TMI Blog1999 (8) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... 13,394/- has been confirmed in terms of Notification No. 5/86-Cus., dated 20-1-1986, penalty of Rs. 5 lakhs has been imposed on M/s. Vishal Footwear under Section 112 of the Customs Act, 1962, penalty of Rs. 20,000/- under Rule 173Q of the Central Excise Rules, 1944 has been imposed; further a penalty of Rs. 25,000/- has been imposed on the Managing Director of the company under the provisions of Customs Act and penalty of Rs. 5,000/- under the provisions of Central Excise Act. Imported goods valid at Rs. 2,18,98,263/- have been ordered to the confiscated under Section 111(o) of the Customs Act, 1962 with option to redeem the same on payment of a fine of Rs. 12 lakhs. 2. The brief facts of the case are that M/s. Vishal Footwear which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 10-3-1995 which clearly stipulates that the demand of duty should be confirmed only after a definite conclusion has been arrived at by the Development Commissioner in case of failure to export goods or closure of unit after exporting a few consignments in terms of duty free benefits granted under the Customs and Excise Notifications. He submits that the demand is premature since the Development Commissioner has not approved de-bonding of the unit and the importers have applied for further extension of the validity period to the Development Commissioner. He therefore, prays that the demand of duties and penalties imposed in the impugned order may be set aside. 5. Opposing the prayer, Shri Sangia, learned DR submits that the duty amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one of the conditions of the exemption notification is that the importer exports out of India 100% or such other percentage, as may be fixed by the Board of articles manufactured wholly or partly from the goods for the period stipulated by the Board or such extended period as may be specified by the said Board. It is thus clear that if the Board of Approval or the Development Commissioner concerned determines that the units failed to export the fixed percentage of articles for the specified period, then in such case it may be held that the conditions of the exemption notification has been violated. At this stage, it will be open for this Department to issue a show cause notice to the unit for demanding the due duty on the imported goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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