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2014 (3) TMI 354 - CESTAT KOLKATAWaiver of Customs Duty - Penalty u/s 112(b(ii) and personal penalty - Exemption Notification No.204/92-Cus dated 19.5.1992 - Held that:- it is not the case of the Applicant Company that they could not fulfill the export obligation due to recession, but the fact is that they had diverted the duty-free imported materials to the local market and did not use the same for the intended purpose. So far as the non-fulfillment of export obligation is concerned, the Board vide its Circular No.21/95-Cus. dated 10.03.1995 had clarified that show cause notice be issued for failure to comply with fulfillment of export obligation and demand of duty should be confirmed only after a definite conclusion is arrived at by the Development Commissioner. However, in case of diversion of duty-free imported materials, there is no such stipulation. It is evident from the above conditions of Notification No.204/92-Cus., dated 19.05.1992 that in failure to utilize the imported duty materials for use in export obligation, duty leviable on such materials is payable. Merely because the Unit has applied for registration with BIFR, does not grant any immunity from duty legally payable by the Company - Applicant Company is not able to make out a case for full waiver of the dues adjudged - Conditional stay granted.
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