TMI Blog2017 (1) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... ayer is made with proof of export, the question with respect to return of bank guarantee may be considered and dealt with at the earliest. Imposition of penalty u/r 17 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 - Held that: - On considering Rule 17 the purpose and object to levy the penalty seems to be that on one hand the concerned person has exported the dutiable goods under bond (without making the payment of duty) and on the other hand thereafter he fails to furnish the proof of such export to the satisfaction of the Excise Commissioner. Meaning thereby, he continues to get the benefit of export without making the payment of duty as he has exported the goods under bond - the respondent authority is not justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ims. (C) Your Lordships be pleased to hold that no penalties whatsoever can be imposed by respondent no.2 on the ground of delayed submission of proof of exports in respect of exports made after payment of duty and under claim of rebate, and order refund of the illegality and unilaterally deducted amount of ₹ 1,22,000/- (Rupees One lakh twenty two thousand only) towards penalty as per the details at Annexure A with interest at 18% per annum for the period commencing the dates of recoveries to date of issue of refund cheque by respondents. (D) Your Lordships may kindly give a direction for immediate return of the 6 original bank guarantees to the petitioner no.1 company by the respondent no.4 inasmuch as the validity peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to interest on delayed payment of rebate is kept open to be considered in appropriate case. [1.3] Now so far as the return of bank guarantee is concerned, Shri Iyer, learned advocate appearing on behalf of the petitioners does not press the present petition with a liberty to approach appropriate authority for return of bank guarantee /bank guarantees on satisfying /producing the proof of export. As and when such prayer is made with proof of export, the question with respect to return of bank guarantee may be considered and dealt with at the earliest. [2.0] Now so far as challenge to the penalty imposed on Rule 17 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 alleging the failure to furnish the proof of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to obtain payment of the rebate, the exporter shall produce to the Excise Commissioner from whose jurisdiction the goods were dispatched, the duplicate application bearing the certificate of the officer, who examined the goods at the port or post office of export or the frontier, as the case may be. If the Excise Commissioner is satisfied from comparison of the duplicate application with the original received from such certifying officer, that the claim is in order, he shall sanction the rebate. Provided such claims for rebate of duty shall be made within one month from the date of issue of the certificate of the officer who examined the goods at the port or post office of export or the frontier, as the case may be: Provided further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of export without making the payment of duty as he has exported the goods under bond. Under the circumstances, in the present case, the respondent authority is not justified to levy the penalty upon the petitioners under Rule 17 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956. It is reported that the respondents have recovered ₹ 1,28,000/- towards penalty under Rule 17 Medicinal and Toilet Preparations (Excise Duties) Rules, 1956, which cannot be sustained, and therefore, the petitioners shall be entitled to refund /get back the penalty. [3.0] In view of the above and for the reasons stated hereinabove, the petition succeeds in part. The impugned levy of penalty of ₹ 1,28,000/- levied under Rule 17 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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