Supreme Court upholds penalty for violating EOU scheme by removing duty-free capital goods without authorization

The Supreme Court upheld confiscation and penalties imposed on an Export Oriented Unit (EOU) for removing duty-free capital goods without approval. The goods, valued around ₹3 crore, were seized for violating Customs Act 1962 §111(j) and Excise Rules. The EOU argued ignorance and delay, but the Court refused to condone delay, citing that removal of capital goods without permission breached EOU conditions. The decision affirms that misuse of duty-free schemes invites strict consequences, reinforcing compliance obligations under customs and excise law.