2006 (1) TMI 481

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....ccountant (C.A.) argued the case on behalf of the applicant. 2. The applicant is engaged in the manufacture of instrument cooling fans. The applicant was issued an EPCG Licence No.P/CG/2133445 dated 6-9-1994 for CIF value of Rs. 26,81,750/- with export obligation of US $ 3,40,000/- which was to be completed within a period of 5 years from the date of issue of the licence. The applicant was thus entitled to import capital goods under concessional rate of duty at 15% under Customs Notification No. 160/92-Cus., dated 20-4-1992. The applicant had executed a Legal Undertaking (LUT) for the same with the Director General of Foreign Trade (DGFT) with the condition that in the event of default in meeting the export obligation it will pay inte....

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.... of US $ 1,73,946/- out of total export obligation of US $ 2,96,000/-. Therefore the unfulled export obligation out of US $ 2,96,000/- is US $ 1,22,054/-. Consequently, the amount of Customs duty due on a pro rata basis would work out to Rs. 2,16,610/- as admitted by the applicant. He further submitted that the DGFT vide its letter F. No. 20/696/94/EOC.IIEPGC.IV dated 10-12-1998 had released the Bank Guarantee No. 5616 dated 11-11-1994 for Rs. 3,01,700/- as the applicant had fulfilled 50% of its export obligation. The ld. C.A., finally submitted that the applicant fulfils all the conditions laid down for admission of the case and pleaded for admission of the application. 6. The Revenue was represented by Shri P.K. Agarwal, Appraising ....

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.... the Commission may consider the application of the applicant only under the Act and that DGFT will be at liberty to take a decision regarding levy/waiver of interest under Foreign Trade (Development and Regulation) Act, 1992. It will suffice to say here that the question of jurisdiction stands settled vide the following decisions holding that the Settlement Commission has jurisdiction in such cases :- (i)      Re : Bell Granito Ceramica Ltd. reported in 2001 (133) E.L.T. 495 (Sett. Comm.) (ii)    Mahendra Petrochemicals Ltd. v. U.O.I. Reported in 2004 (165) E.L.T. 499 (Guj.) (S.L.P. filed against this order has been dismissed by Supreme Court on merits as well as on time-bar). We find that the app....