9911796707
TMI Blog2020 (2) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... First Respondent has affirmed the orders of the Second and Third Respondents imposing penalty and upholding penalty of Rs. 25,000/- on the Petitioner. 2. The Petitioner had exported goods and had filed duty draw back claims under provisions of the Customs, Central Excise Duties and Service Tax Draw Back Rules, 1995 and claimed a total draw back due of Rs. 12,01,874/-. There was some delay in getting foreign remittance and therefore, a Show Cause Notice dated 27.08.2010 was issued to the Petitioner to show cause as to why penalty under Section 117 of the Customs Act should not be imposed on the Petitioner. 3. The Petitioner replied to the Show Cause Notice and appeared before the original authority and the Third Respondent by an order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Petitioner under Section 117 of the Customs Act was right. 6. The learned counsel for the Petitioner submits that penalty under Section 117 of the Customs Act will apply only where there is any failure or violation of any provisions of the Customs Act and the alleged failure in submitting BRCs in time in terms of the Customs, Central Excise Duties and Service Tax Draw Back Rules, 1995 would not attract penalty under Section 117 of the Customs Act, 1962. Defending the impugned orders, Mr. S.R. Sundar, learned standing counsel submits that as per the Rule 16(A) (2) of the aforesaid rules if the exporter fails to produce evidence in respect of realization of export proceeds within a period allowed under the Foreign Exchange Managament A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or late realization of the export proceeds. Section 117 makes it very clear that penalty is to be imposed where there is failure to comply or where there is a violation in law, penalty can be imposed. The exporters do face difficulties in realization of export proceeds and therefore not all cases where there is a delay in producing BRCs penalty is to be imposed. Further, imposition of penalty may result in denial of export incentive indirectly in several cases. 9. I am satisfied that this is not a fit case for imposition of Rs. 25,000/- as there is a realization of the export proceeds. However, since there is a failure of penalty imposed under Section 117 of the Customs Act, penalty of Rs. 25,000/- is reduced to Rs. 5,000/-. 10. This Writ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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