2023 (9) TMI 729 - CESTAT KOLKATA

EPCG Scheme - respondent was obligated to export the marbles mined using the said imported capital goods to the tune of eight times the duty foregone - seeking recovery of the duty foregone, once the export obligation period expired with interest and penalty - HELD THAT:- It is not in dispute that the respondents could not undertake any mining activity because of the aforesaid restrictions imposed by the Hon’ble Apex Court issued on 21.09.2005. To attach motives on part of the appellant under such circumstances is certainly not called for. It cannot be anybody’s case that the respondents continued to import the capital goods with intentions of defrauding the revenue and depriving the department of its rightful claim. In any case the department has not been able to adduce any evidence in support of this proposition of theirs of mis-representation and deliberate suppression of facts. The fact that the respondents could not discharge their export obligation and hence failed to meet the export commitments leading to nonissue of the EODC is understandably beyond the control of the respondent.

The compelling circumstances beyond their control pointed out by the respondents, have been admitted by the authorities. Therefore, no blame or aspersions can be cast on the respondents that they had malicious intent to defraud the revenue. This argument of the revenue is rejected summarily.

There are no infirmity in the orders of the learned Commissioner (Appeals) - appeal filed by Revenue dismissed.