2006 (1) TMI 379

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....d capital goods, such as, machinery etc. required for use in the Ruia Aquaculture Farms Ltd. set up by the applicants as detailed in Annexure "I" to the show cause notice. (II)    Customs Duty of Rs. 33,87,022/- in respect of imported raw material as detailed in Annexure "II" to the show cause notice. (III)   Central Excise Duty of Rs. 21,57,047/- in respect of indigenously procured capital goods as detailed in Annexure "III" to the show cause notice. In addition he has imposed penalty of Rs. 63,00,520/- (Rupees sixty - three lakhs five hundred twenty only) under Section 114A of Customs Act. Penalty of Rs. 21,57,047/- (Rupees twenty-one lakhs fifty-seven thousand forty-seven only) (equal to the Central Exci....

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....initially commenced production for test purpose but abruptly stopped their manufacturing/cultured activity in their licensed premises and never exported even a single consignment out of India in pursuance to the above terms granted by the Secretariat for Industrial Approvals, Ministry of Industry or Legal Agreement dated 19-11-1992. Inasmuch as, the appellant failed to fulfil their export obligation, investigations were conducted by the Revenue and proceedings initiated for denial of the benefit of notification, under which the capital goods or raw materials were imported free of duty or the capital goods were procured indigenously without payment of duty. Accordingly, notice was issued to them for denial of the benefit and confirmation of ....

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.... in the manufacture and/or Development prawns. As such, he submitted that substantial condition of the notification as regards the use of the imported goods stands fulfilled and failure on their part to export the goods should be condoned. 8. After hearing the ld. DR appearing for the Revenue, we find that under the various notifications involved, exemption to specified goods were granted from payment of duty for their use in an integrated aquaculture farms and export of farm products by 100% EOU. Condition 2 of Notification No. 188/93-Cus., dated 27-12-93 is to the following effect "the importer uses the goods for the purposes of production of aquaculture products and exports out of India hundred per cent or such other percentage, ....

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....ty of the said notification, they would have paid the duty on the same. Special concession was given only in those cases were the final products would require to be exported and earn foreign exchange. The conditions in the notification being post-import condition and being continuing conditions, the benefits of the notification can be denied on non-fulfilment of such condition. As such, though we may have sympathy with the appellant, but we cannot relax the condition of notification and extend the benefit to them. 10. During the course of arguments a query was put to the appellant at to why they have not approached the Development Commissioner for lowering of the percentage of export or for extension of time, he could not give a sat....