2006 (11) TMI 403

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..... . [Order per : P.G. Chacko, Member (J)]. -  The appellants had imported certain capital goods under EPCG Scheme claiming the benefit of Notification No. 28/97-Cus. dated 1-4-1997. The goods were warehoused. When the Ex-Bond Bill of Entry dated 25-1-2000 was assessed, duty of Rs. 1,65,44,826/- was forgone in terms of the Notification. Condition 4 of the Notification was that the entire produ .....

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..... ants. Hence the present appeal. 2. After hearing both sides and considering their submissions, we find that the demand of duty on the appellants is premature inasmuch as the ground raised in the impugned order (that the export obligation had not been fully discharged) cannot be tenable until after expiry of the time granted by DGFT for discharge of the export obligation. Admittedly time is a .....

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..... was for the licensing authority (DGFT) to take action against the licensee for such breach. It is on record that the DGFT extended the period for discharge of export obligation as per order dated 20-9-2004. Presumably, that authority must have enquired into the conduct of the licensee in relation to the various licence conditions, while relaxing one of the conditions of the licence (extension of .....

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