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2014 (3) TMI 1049 - HC - Central ExciseDemand of duty and imposition of penalty - Failed to produce original and duplicate copies of AREs-1 duly endorsed by the customs as a proof of export - Export consignment cleared for which proof of exemption was not allegedly submitted in time and excisable goods were removed without payment of duty under cover of invalid letter of undertaking (LUT) - Held that:- insistence on the proof of exports is understood. However, the insistence on production of ARE’s and terming it as a primary one has not been supported in law. Mr. Shah is therefore justified in criticizing the revisional authority on the ground that the authority was oblivious of execution of other documents and particularly in respect of the clearance of goods under bond/LUT. If there is adequate proof of exports then, non-production of ARE-1 would not result in the allegations being proved and the demand being confirmed. There is no question of penalty being imposed in such a case as well and without verification of the records. The penalty could have been imposed had there been absolutely no record or no proof of any export. The approach of the revisional authority therefore, is not in conformity with law as laid down in UM Cables Limited v. Union of India [2013 (5) TMI 459 - BOMBAY HIGH COURT]. In the present case, the fundamental issue has not been examined and the order suffers from a patent error. It is also suffering from clear perversity and in not referring to the contents of the documents which are forming part of the two letters. If the two letters they point towards Bill of Lading and equally the commercial invoice, shipping bill. Mr. Shah would urge that the confirmation of payment by buyers is on record. Then, the Revisional authority should have expressed an opinion thereon and whether that has any impact on the claim made by the Department. That having not done, the Revisional authority failed to exercise its jurisdiction vested in it in law. The Revisional order deserves to be quashed and set aside. - Decided in favour of petitioner by restoring revision application
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