TMI Blog2002 (12) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... ces were effected and cleared after claiming exemption of duty under Notification 110/95-Cus., dated 5-5-95. The Officers of Headquarters (Preventive), Bangalore visited and searched the factory premises on 3-8-2000 and noticed that machinery under import valued at Rs. 8.23 crores was installed. However no exports were effected by the Company towards fulfilment of export obligation. The said imported articles were seized and enquiries were launched and a show cause notice was issued. 2. The Commissioner, Bangalore heard the party and issued the order impugned in these proceedings. The Commissioner found that the provisions of Exim policy permits an importer to import capital goods at concessional rates against a fulfilment of export oblig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation. Therefore it is concluded that information was suppressed by the importers about the non-fulfilment of export obligation with an intention to evade duty and held "They have shown scant regard to the concerned Department" and also the not having observed the requirements of law and procedure. He thereafter concluded that the goods under seizure viz. capital goods valued at Rs. 8.23 crores CIF were liable for confiscation under Section 111(o) of the Customs Act for non-fulfilment of the conditions of Notification 110/95, dated 5-6-95 and ordered their confiscation offering them to redeem on a fine of Rs. 1 lakh. He imposed a penalty of Rs. fifty lakhs on the importers under Section 112A and Rs. 10 lakhs on Shri Ashok Kumar Mohta, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Act and penalty under 112A of Customs Act, 1962 is totally uncalled for. (b) We find that in the present case, licence was for Rs. 9,10,53,498/- and the appellants have admittedly imported only Rs. 8.23 crores worth of goods i.e. they have not imported the full value during the period November, 96 to December, 97, there is no finding arrived at whether imports of entire goods as permissible were effected when the entire imports value-wise which were permissible have not been effected. It is also not clear from the order the EPCG export performance period has been reckoned i.e. from first import or the last import. A reading of the Notification No. 110/95 reveals that clause 7 thereof prescribes that the capital goods imported are in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted or and utilized the full value of this license, the penalties imposed are not called for. In any case no requirement of producing export obligation to the Customs Authorities have been shown to us. The Commissioner's finding of 'Scant Regard shown to Concerned Department' therefore cannot be a cause to visit penalty of Rs. 50 lakhs and Rs. 10 lakhs as arrived at. CBEC has issued warning to Officers in the field formations (Ref. Circular No. 75/2002-Cus., dated 12-11-2002) appreciating that exporters are corner stones of the Indian Economy in the existing era of globalisation and Government has been consistently endeavouring trade facilitation for promoting the trade in general and exports in particular. Procedures are being decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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