2018 (3) TMI 360 - AT - Customs

Non-fulfilment of export obligation - the appellant appeared to have availed the double benefit under N/N. 203/92-CUS dt. 19.05.1992 and violated para V(a) of the said notification - Held that: - the object of the bond is to ensure compliance with post-import requirements to thwart any attempt to divert imported goods and therefore hold that the conditions are substantive in nature. In the circumstances, compliance with these conditions is mandatory to meet the objects and purposes of the notification.

As to the question of levy of additional duty of customs (CVD) on the imported HMS, we do not find any merit in the contention of the appellant that CVD should not be demanded from them because they would be eligible to avail the Modvat credit from CVD. If that view is accepted, then no importer-manufacturer would ever be required to pay CVD on the ground that Cenvat Credit of the same would be availed by them at the next stage.

Extended period of limitation - Held that: - in the present case, the department has rightly alleged that the appellant had withheld the information about availment of Modvat credit at the time of import of consignments at CFS - extended period rightly invoked.

Appeal dismissed - decided against appellant.