2014 (3) TMI 354

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....a, N.D.Bhaiya, Sachin Bhaiya, Pankaj Bhaiya and Mridula Bhaiya; and personal penalty of Rs.10.00 lakh imposed on Shri Alok Kumar, Authorized Signatory and Representative of the Applicant Company. 2. M/s. RSI Pvt. Ltd., the Applicant No.(1) was issued, in terms of para 50 of Export-Import Policy, 1992-1997 a Quantity Based Advance Licence for duty-free import of polypropylene and HDPE. The materials were imported at nil rate of exemption Notification No.204/92-Cus dated 19.5.1992. The export obligation stipulated in the licence was 6500 MT of articles made of HDPE (pipes) for US $5525000 and 4500 MT of articles made of polypropylene (pipes) for US $4162500 within 12 months from the date of issue of the licence. The Applicant Company importe....

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....ion Fees for approved extension of EOP against the said licence, which is pending. It is contention of the ld. Advocate for the Applicants that as EOP is still subsisting, therefore no demand can be raised by the Customs Authorities. 4. Ld. AR for the Revenue reiterated the findings of the ld. Commissioner. 5. Heard both sides and perused the records. We find that it is not the case of the Applicant Company that they could not fulfill the export obligation due to recession, but the fact is that they had diverted the duty-free imported materials to the local market and did not use the same for the intended purpose. So far as the non-fulfillment of export obligation is concerned, the Board vide its Circular No.21/95-Cus. dated 10.03.1995 ha....

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.... before the export obligation under the said licence has been discharged in full and export proceeds realized. Condition No.(ii)(b) of the Notification No.204/92-Cus., dated 19.05.1992 reads as under:-          the importer makes a declaration before the Assistant Commissioner of Customs binding himself to pay on demand an amount equal to the duty leviable but for exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with. 8. It is evident from the above conditions of Notification No.204/92-Cus., dated 19.05.1992 that in failure to utilize the imported duty materials for use in export obligation, duty leviable on such materials....