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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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