https://www.taxtmi.com/caselaws?id=784413 Penalty under s.112(ii) of the Customs Act was sought against a bank for alleged breach of conditions governing duty-free import of gold supplied on loan under an exemption scheme, on the premise that the importer failed export obligations. The Tribunal held that default would arise only upon non-completion of prescribed exports or non-submission of export evidence, but customs had cancelled the bank's bonds after verifying exports on the basis of shipping bills, BRCs and customs-attested invoices furnished through the importer. As the importer exported the stipulated quantity within time and the bank paid duty with interest on the minimal unproven balance, the bank complied with the exemption conditions and FTP/HBP requirements; the demand and penalties were correctly dropped and the appeal was dismissed. en-us Thu, 04 Dec 2025 00:00:00 +0530 Mon, 05 Jan 2026 08:04:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784413 Penalty under s.112(ii) of the Customs Act was sought against a bank for alleged breach of conditions governing duty-free import of gold supplied on loan under an exemption scheme, on the premise that the importer failed export obligations. The Tribunal held that default would arise only upon non-completion of prescribed exports or non-submission of export evidence, but customs had cancelled the bank's bonds after verifying exports on the basis of shipping bills, BRCs and customs-attested invoices furnished through the importer. As the importer exported the stipulated quantity within time and the bank paid duty with interest on the minimal unproven balance, the bank complied with the exemption conditions and FTP/HBP requirements; the demand and penalties were correctly dropped and the appeal was dismissed. Case-Laws Customs Thu, 04 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784413