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TMI Blog2013 (9) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... The main appellant, M/s. Travel Planners Pvt. Ltd. was issued an EPCG licence for import of a Toyota Camry car for use as capital goods in export of services and the appellant imported and cleared the car having an assessable value of Rs. 7,47,000/- under B/E No. 01885, dated 25-7-2003 availing the benefit of Notification No. 55/2003 dated 1-4-2003 which provided for a concessional rate of duty after executing the prescribed bond and bank guarantee for fulfilling the terms and conditions of the EPCG scheme. Intelligence received later indicated that the appellant did not use the impugned goods as commercial vehicle for the purpose of earning foreign exchange but the same was being used as a private vehicle for office use and no foreign exch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Rs. 2 lakhs was imposed on Mr. Shikhar Chandra Jain, Managing Director of the appellant firm. The appellants preferred an appeal before the lower appellate authority who vide the impugned order rejected their appeals. Hence the appellants are before us. 3. The ld. Advocate for the appellant makes the following submissions. 3.1 Neither the customs notification nor the EXIM policy provisions as they stood at the relevant time stipulate the condition that the imported vehicle should be registered as a taxi and the foreign exchange should be earned by use of the imported vehicle directly as a taxi. 3.2 The circular for registration of the vehicles imported under EPCG scheme as a tourist taxi was issued only on 31-8-2008 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble High Court of Andhra Pradesh in Sravani Impex P. Ltd. [2010 (252) E.L.T. 19 (A.P.) and of Hon'ble Kerala High Court in the case of CC v. Kumarakom Lake Resorts [2011 (268) E.L.T. 153 (Ker.)] which was upheld by the Hon'ble Apex Court [2011 (268) E.L.T. A49 (S.C.)] in support of her contentions. 5. We have carefully considered the rival submissions. 5.1 As regards the power of the Customs to investigate the matter after issue of EODC by the licensing authorities, the Hon'ble High of Delhi in the case of Interglobe Enterprise Ltd. v. UOI [2006 (203) E.L.T. 202 (Del.)] held that the mere issue of a certificate by the DGFT may also not be conclusive and such a certificate cannot circumscribe the power of the authority to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There are a large number of judicial pronouncements in this regard including the well known Jagdish Cancer & Research Centre [2001 (132) E.L.T. 257 (S.C.)] which support this view. Therefore, there is no merit in the argument that the duty demand is time-barred. 5.3 Notification No. 55/2003-Cus. which is the subject matter of dispute contains an Explanation and clause 4(ii) of the said explanation defines "export obligation" as "in relation to importers rendering services, means, receiving payments in freely convertible foreign currency for services rendered through the use of capital goods". Therefore, the issue for consideration is whether the imported capital goods should be directly put to use to earn foreign exchange or ev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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