2006 (6) TMI 350

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....Shri A.P.S. Suri, Jt. CDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The first appellant M/s. Oswal Paper & Allied Indus. imported Second Hand Paper Machine in 1996 under EPCG Scheme. Importers of capital goods are under obligation to export finished products. However, the project failed and the appellant was neither able to set up the manufacturing plant fully, nor produc....

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....rest (clauses 5 & 6 of the notification). It is the contention of the Ld. Counsel that imposition of penalties is not contemplated in law and the penalties are required to be set aside. 4. Ld. JCDR contended that the goods become liable to confiscation and the appellant is liable to penalty in as much as the import was subject to export condition and since the appellant failed to carry out....

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....each block of two years from the date of issue of licence from the second block or within such extended period as the Asstt. Commissioner of Customs may allow, evidence to the satisfaction of the Asstt. Commissioner of Customs showing the extent of export obligation fulfilled, and where the export obligation of any particular block of two years is not fulfilled in terms of the preceding condition,....

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....of clearance of the goods. 6. The importer shall, if he fails to import goods for a minimum value of twenty crores of rupees within the validity period of the import licence, be liable to pay forthwith the whole of the duties of customs leviable on the goods imported but for exemption contained in this notification together with interest at the rate of 24% per annum from the date of clearance o....