Differential duty under the EPCG Notification No.28/97 was held...

Differential duty under the EPCG Notification No.28/97 was held payable in principle in terms of the bond, but the demand was quashed and remitted for re computation because the adjudicating authority confirmed demand without hearing the appellant and without considering pending requests to include third party exports, duty calculation on depreciated value of capital goods, and permissible intervening exports. Confiscation under the Customs non observance provision is unsustainable where the competent authority subsequently extended the export obligation period, thereby regularising earlier non observance; consequently confiscation of capital goods and the related penalty are set aside. Appeal allowed in part and demand remanded.