2018 (10) TMI 413 - AT - Customs

Appeal granted for remand due to EPCG License export obligations. Procedural aspects and new evidence considered.

The Tribunal allowed the appeal for remand, emphasizing the importance of fulfilling export obligations under EPCG Licenses. The appellant's argument that ... Validity of subsequent SCN - earlier SCN pending adjudication before the adjudicating authority below i.e. Commissioner (Appeals) - EPCG Scheme - non-fulfillment of export obligation - N/N. 97/2004-Cus dated 17.9.2004 - Held that:- The appeal has been dismissed only for want of said EPCG certificate - the appellant be given an opportunity to put forth the documents as impressed upon today before us before the original adjudicating authority being crucial to the adjudication. Matter remanded to the original adjudicating authority requiring them to consider the documents about fulfillment of the Export Obligation as assailed by the appellant and thereafter to decide the SCN afresh - appeal allowed by way of remand. Issues:1. Failure to fulfill export obligation under EPCG License.2. Alleged violation of conditions leading to Show Cause Notices.3. Adjudication process and evidence submission.4. Appeal against order and consideration of fresh evidence.Issue 1: Failure to fulfill export obligation under EPCG LicenseThe appellants imported goods under EPCG License at a concessional rate subject to fulfilling export obligations. The Department alleged non-compliance, resulting in Show Cause Notices and a demand for recovery.Issue 2: Alleged violation of conditions leading to Show Cause NoticesThe Department issued Show Cause Notices due to alleged failure in fulfilling export obligations within the prescribed period. Subsequent notices were issued despite pending adjudication, leading to the present appeal.Issue 3: Adjudication process and evidence submissionDuring the appeal, the appellant argued that the subsequent Show Cause Notice was not sustainable as it pertained to the same cause of action. The appellant presented fresh evidence regarding export obligation compliance, which was allegedly ignored by the authorities.Issue 4: Appeal against order and consideration of fresh evidenceThe Department contended that the appellant failed to produce the Export Obligation discharge Certificate from DGFT, leading to the dismissal of the appeal. The Tribunal, after hearing both sides and reviewing the documents, remanded the matter to the original adjudicating authority for consideration of the fresh evidence regarding export obligation fulfillment. The appeal was allowed for remand.This judgment highlights the importance of fulfilling export obligations under EPCG Licenses, the procedural aspects of Show Cause Notices, the significance of presenting evidence during adjudication, and the appellate process concerning fresh evidence submissions for consideration by the authorities.