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2015 (10) TMI 2083 - AT - CustomsUtilisation of Excess credit limit, under DEPB Denial of benefit of exemption Notification No. 45/2002-Cus Importer imported consignment of Crude Palm Oil and cleared goods on basis of Telegraphic Release Advice (TRA), issued vide Customs House and Duty Entitlement Pass Book (DEPB) Licenses During investigation DRI found that importer had utilised excess credit, in violation of condition of DEPB License Adjudicating authority denied benefit of exemption Notification No. 45/2002-Cus and confirmed demand of duty, interest and imposed penalty Held that:- objective of DEPB is to neutralise incidence of customs duty on import content of export product Purpose to grant duty credit against export product is to allow neutralise incidence of Customs duty on import content of export product Therefore, restriction to use DEPB credit is not beyond Policy and notification Hence, demand of duty alongwith interest on importer is sustainable Appellant purchased DEPB from open market and restriction of use was categorically mentioned therein Lapse on part of Customs authorities to mention same on TRAs, would not waive penal consequences on importer Hence, imposition of penalty on importer is warranted Appeal filed by importer dismissed Decided against Importer. There is no evidence available on record that Custom House Agents was aware of alleged irregularity Adjudicating authority observed that appellant has breached conditions of CHA Regulation, 2004 Hence, imposition of penalty on CHAs is not warranted In view of discussion, demand of duty along with interest and penalty on importer upheld However penalty imposed on CHA set-aside Appeal filed by CHAs allowed Decided in favour of CHAs.
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