9911796707
TMI Blog2018 (4) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Appellant had been issued with licence dated 19th March 1996 for import of capital goods valued at Rs. 26,73,95,635/- (CIF) at 'nil' rate of duty in accordance with notification no. 111/95-Cus dated 5th June 1995 under the Export Promotion Capital Goods (EPCG) scheme. The consequent export obligation was to be fulfilled by manufacature and shipment of 'ball-roller and spherical bearings' valued at Rs. 1,60,80,44,096/- within a period of eight years. Capital goods valued at Rs. 4,37,63,098/- had been imported against bills of entry no. 253/17.6.1990 and 248/29.5.1997. For alleged failure to fulfil the export obligation, and for violation of various conditions in notification no. 111/95-Cus dated 5th June 1995, the capital goods were held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of export obligation cannot be subject to review of adjudicating authorities under Customs Act, 1962. For this, reliance has been placed on the decision of the Tribunal in CC (Export), Mumbai v. Rajasthan Spinning & Weaving Mills Limited [2008(229)ELT 614 (Tri-Mumbai)] and of the Hon'ble High Court of Madras in CC (Airport), ACC Chennai v. CESTAT, New Delhi [2017 (353) ELT 186 (Mad.)] and in Ankit Fasteners Pvt. Ltd. v. ACC (EPCG), Chennai [2013(292)ELT 14(Mad)]. It is also his submission that the export obligation having been duly fulfilled in terms of the revisions in the import licence effected by the competent authority, proceedings for violation of notification No. 111/95-Cus cannot sustain. Controverting the reliance placed by the adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority for de novo consideration. The original authority is required to initiate proceedings only on the appellants not fulfilling the terms of the EPCG License the terms of their undertaking given by them. The Department is entitled to initiate proceedings only if the present extension of time for export obligation is not fulfilled by the appellants. The impugned order is set aside and the matter is remanded to the original authority for de novo consideration on the basis of the above terms. Miscellaneous application, stay and appeal are allowed by way of remand." From this, it would appear that the remand to the original authority was limited to ascertainment of fulfilment of export obligation. This is particularly so as the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rms of the remand are very clear; the only issue left for the adjudicating authority was to determine fulfilment of the export obligation within the statutory period. The fulfilment of the revised export obligation within the extended period is not in question. The adjudicating authority should have limited its findings only to that and should not have travelled beyond the terms of the remand. Having done so and having confiscated the goods, besides ordering recovery of duty and imposition of penalty, the impugned order fails to sustain. 9. Consequently, both on the applicability of the conditions of the notification, as well as the deviation from the order of the Tribunal, the impugned order is set aside and appeal is allowed. (Operative ..... X X X X Extracts X X X X X X X X Extracts X X X X
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