TMI Blog2001 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... r 207, dated 2-11-1993. This order exempted specified capital goods, toolings and spares, for a total value of Rs. 332.89 crores from payment of the basic and additional duty of customs. The substantive conditions subject to the grant of exemption were these. Maruti should export 11000 YE2 cars during the financial year 1995-96 and 21500 cars during each of the next six financial years, this obligation being in addition to any other obligations for export imposed on the company except for obligations under the Duty Exemption Entitlement Certificate Scheme. If there was shortfall in export in any year, Maruti was to pay that proportion of 1/7th of the duty corresponding to the extent of the shortfall. In other words, the duty liability was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pares. Such goods would have been installed in the appellant's factory. The notification also contained the condition that the importer shall not part with the goods, and contravention of this condition was not alleged in the notice. In reply to our question, Counsel for the appellant emphatically stated that after clearance from Customs, the imported goods were installed in its factory at Gurgaon, where they continue to be used for production of cars. He emphasised that they had to be there at least till 2001-2002, when the seven years prescribed in the exemption notification ends. The departmental representative's answer, that the goods were not available before the Commissioner, is obviously unacceptable. The Commissioner had the power a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. You cannot impose two separate penalties in the same order on the same person for the same contravention. The Commissioner does not cite the provision of law under which he has imposed the penalty of Rs 15.15 crores. 7.The emphasis by the departmental representative that failure to discharge the export obligation, shall render the goods liable to confiscation and the appellant to penalty, and that the payment of duty shall be in addition of the fine and penalty under the Act, is not of any help. Whether the goods are liable to confiscation or not cannot be determined by confiscation under Section 25 of the Act. That confiscation can only be ordered to exempted goods from duty. The liability to confiscation of the goods and to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.)" 9.One of the conditions of the exemption itself was that the duty was to be paid within the period specified. It cannot therefore said that there is breach of the condition of the exemption. We have to distinguish this kind of exemption from an unconditional exemption, or an exemption to which no conditions are attached requiring payment of any duty within a specified period. In such cases, the duty to be recovered either by recourse to Section 28 or by enforcing any bond or undertaking that the importer has executed. In the case before us, such a step might have been necessary, if Maruti Udyog Ltd. had not paid the amount within 30 days from the close of the financial year. It could then be said that one of the conditions of the exe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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