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2005 (11) TMI 116 - AT - CustomsValidity Of Order-in-Original - 100% Export Oriented Unit - Imports capital goods, consumables, spares, raw materials, equipment - Exemption from excise duty in terms of the Notification No. 13/81-Cus. - Confiscation - Demand duty - Penalty - HELD THAT:- The fact that the EOU has imported goods worth Rs. 2,62,83,048/- is not in dispute. Due to certain difficulties, they were not in a position to produce the items to be exported. Hence they could not completely fulfill, the export obligations. Since they have failed to fulfill the export obligation they were not entitled for the benefit of the exemption notifications. Hence the imported goods are liable for confiscation u/s 111(o) of the Customs Act 1962. The order of the Commissioner as regards the liability to confiscation and demand of duty is legal and proper. We do not have any reason to interfere with the same. However, as regards the penalty, we do not find any mala fide. In view of the vicissitudes of business environment, the appellants were unable to fulfill export obligation. Hence imposition of penalty is not justifiable. As far as the redemption fine is concerned, we feel that in the interest of justice, it could be reduced to Rs. 10,00,000/- (Rupees Ten Lakh only). The appeal is disposed of in the above matter.
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