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2008 (11) TMI 407 - AT - CustomsEPCG scheme - Car imported under EPCG scheme as capital goods - concessional rate of duty of 5% ad valorem and registered as an all India tourist taxi - violation of the EPCG licence conditions – obligation could be fulfilled by export of goods capable of being manufactured by the use of capital goods imported under EPCG scheme - fulfil the obligation by export of same goods manufactured in different manufacturing units of the licence holder/specified supporting manufacturer - export obligation may also be fulfilled by export of other goods manufactured or service provided by the same firm/company or group company which has the EPCG Licence - appellant produced an installation certificate issued by a chartered engineer without verification of the capital goods (car in this case) claiming fulfilment of the condition of the Licence and Notification. It was falsely claimed in the certificate that the capital goods was installed - convertible foreign exchange received from foods, beverages, room tariff, Ayurveda Massage were shown to have been received from the use of the capital goods (car in this case) - Income from renting of other vehicles was shown as income from renting of the imported vehicle - misrepresented before the Government that they have a branch - There was no functional office at any of the addresses furnished by them to the DGFT - false information was given to obtain the permission for transfer of the vehicle - shifted the vehicle without the permission of the DGFT - duty forgone was liable to be recovered from them - car was held liable for confiscation under Section 111(o) of the Customs Act - importer held liable for penalty – Held that: - export obligation in this case could be fulfilled by the appellant only through foreign exchange earnings by actual user of the car for rendering the prescribed service in terms of the Notification - benefit of the amendment brought to this Notification by Notification No. 29/2004-Cus., dated 28-1-2004 would not be available to the appellant being ex porter of service and not exporter of goods - car in this case can be held to have been installed in the appellant’s premises and its conversion to a private vehicle is immaterial where it is used for the intended purpose - there being no conflict of views regarding fine, penalty or the quantum of duty, the appeals will have to be dismissed.
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