9911796707
TMI Blog2022 (12) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... had imported capital goods for manufacturing and exporting the finished products at the concessional rate of duty by availing exemption notification as follows:- Sl. No. EPCG Licence No.& date BoE No.& date Notf. Availed Export obligation condition in Notification Date of installation of machines 1. 1330001821 00363/10.04.08 97/2004 1st to 6th yr 50% 10.12.2008 Dt.31.03.2008 00533/28.05.08 17.09.2004 7th to 8th yr 50% 2. 133002301 1515/28.10.09 102/2009 1st 4 yr 50% 24.11.2011 Dt.25.09.2009 11.09.2009 5th to 6th yr 50% 3. 1330002302 1513/28.10.09 102/2009 -Do- 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty, which have been foregone with proposal to confiscate the capital goods and further, penalty was proposed under Section 111(o) read with Section 112 (a)(ii) and Section 117 of the Customs Act. After issue of show cause notice, the machines were sealed & seized by the Department on 02.12.2016. 5. The appellant appeared and submitted a detailed reply vide letter dated 9.6.2017, wherein, inter alia, stating that they had informed the Customs Department at Kanakpur, Jaipur in the year 2015, they have submitted a new installation certificate issued by the Central Excise Department, Vidya Nagar, Jaipur, after reinstallation of the machinery at B-237 A, Road No.6D VKI Area, Jaipur and they were making the regular correspondence with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... address. 7. Pursuant to shifting of the machinery to the new address, it took around 2 years to re-start the production, after getting fresh orders from the buyers. In the circumstances, they could not fulfil their export obligations. They have further stated that the Customs Department have seized the imported machinery on 2.12.2016 for lack of preapproval of shifting and non-fulfilment of the export obligations. Thus, the production was lying closed since December, 2016 resulting in cancellation of the export orders and their bank account also became NPA. They have incurred heavy losses. They requested for regularizing the shifting of the capital goods at new location and also prayed for extension of the period of export obligation for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequently due to non-appearance before this Tribunal, after granting last chance on 26.09.2022, the appellant had filed written submissions praying for decision on merits. 10. Accordingly, heard the ld. Departmental Representative for Revenue and perused the records and written submissions filed by the appellant. 11. The appellant has reiterated the grounds taken before the Commissioner (Appeals). It has been further urged that the appellant could not fulfil the export obligation within the stipulated period of 6 to 8 years from the date of installation, due to disruption of the business due to fire and secondly due to shifting of the factory to the new location. It is further urged that DGFT on finding that there have been genuine diffi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export obligation, have condoned the delay in achieving the export obligations and have also regularised the shifting of the machinery to the new address. However, such extension remained mere formality or an eye wash, as the appellant did not have any opportunity to manufacture and export pursuant to granting of extension in March, 2018, as the machines were admittedly lying sealed by the Customs Department since 2016. In these circumstances, I allow these appeals and set aside the impugned orders. I further order that the machines shall be de-sealed with the immediate effect within a period of 30 days from the date of receipt of this order, if the machines so far are not desealed. Further, the appellant shall be granted a period of 2 year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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