TMI Blog2019 (4) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is nothing on record to show that appellants have suppressed any facts or misstated facts. If the permission from the Customs and the final exit from the Development Commissioner were obtained either through fraud or collusion, then all Officers who were involved in so colluding or sanctioning fraudulent permissions also should have been investigated and put to notice. If there was no evidence of fraud or collusion, then there is no case for the demand. The impugned order demanding customs and central excise duties invoking extended period of limitation and proposing confiscation of the goods and imposing of penalties is without any merit and the same needs to be set aside - Appeal allowed - decided in favor of appellant. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant approached the Superintendent of Central Excise, Kakinada on 01.06.2009 and the appellant were permitted to switch to EPCG Scheme vide letter dated 05.06.2009 issued by Asst. Commissioner of Central Excise, Kakinada subject to the condition that port of registration may be amended from Kakinada Port to Anaparthy as it was not operational on the said date. Thereafter, the appellant paid the duties as required and the same was intimated to the Superintendent of Central Excise requesting for NOC. NOC for conversion from EOU Scheme to EPCG Scheme was issued by the Commissioner to the appellant on 22.06.2009 and the Asst. Development Commissioner allowed the appellant for the final exit from EOU Scheme on 25.06.2009. 2. Thereafter on 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e show cause notice dated 18.12.2009 issued by him vide the impugned order and confirmed the demand of Customs and Central Excise duties along with interest. He also ordered confiscation of capital goods imported and the capital goods procured domestically and imposed redemption fine. In addition, he also imposed a penalty of ₹ 13.00 lakhs under section 112(a) of the Customs Act, 1962, on the following grounds: (i) Notification No. 52/2003-Cus, dated 31.03.2003 is applicable during the relevant period de-bonding from the 100% EOU scheme and switching towards EPCG scheme. Appellant have not achieved this NFE, therefore they are entitled the benefit of the schemes for these two notifications. Appellant s contention that they achieved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating authority for failure to fulfill export obligations can be proceeded against only after the Development Commissioner determines non-fulfilment of export obligations. 5. Ld. DR reiterated the findings of the impugned order and submits that the exemption notification available to 100% EOU had some conditions which had to be fulfilled. The appellant had not fulfilled the conditions of the exemption notifications and therefore the demand is correctly confirmed against the appellant. Correspondingly, confiscation of goods and imposition of penalties are also sustainable. 6. We have considered the arguments on both sides and perused the records. The In Principle approval for switching over from EOU to EPCG Scheme was issued by the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant to switchover to EPCG Scheme. Thereafter, the matter was also examined by the Development Commissioner and on his recommendation only the Commissioner of Customs Central Excise permitted switching over to EPCG Scheme. Based on such permission, the appellant was also given final exit from EOU Scheme on 25.06.2009. Almost six months after the final exit of the appellant from EPCG Scheme, the show cause notice was issued by Ld. Commissioner on the same issue. The amendment to the notifications No. 22/2003-CE and 52/2003-CE, both dated 31.03.2003 were effective from 11.04.2008 well before the department permitted the appellant to switchover to EPCG Scheme. 7. There is nothing on record to show fraud and that the officers being awa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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