TaxTMI 
TaxTMI 
2003 (1) TMI 653
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....rmitting import of capital goods, viz. Plant & Machinery for Manufacture of Black & White and Corrected Negative/Positive for Offset Printing of CIF value Rs. 47,60,000/-. Applicant was under obligation to export Black & White and Corrected Negative/Positive for Offset Printing of value 4 times the CIF value of imported capital goods within a period of 5 years from the date of issue of the licence. Imports of capital goods were effected under Notification No. 110/95-Cus., dated 5-6-1995 with effective Customs duty of 15%. 2. The applicant had imported the following capital goods vide Bill of Entry No. 11008 dated 22-1-96 : (a) SCITEX SCANNER-342L ; (b) IRIS INKJET PRO....
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....stances appears to be contradictory to each other, which needs to be corrected. (b) The "duty element settled by the Customs Authority" mentioned in the DGFT's letter needs clarification. (c) Endorsement of DGFT in the licence taking into consideration the representation of the Applicant dated 17-5-2002. The Applicant filed written submissions on 4-7-2002 as under : (A) The applicant produced a copy of DGFT's letter dated 15-5-2002 to for reducing the CIF value by excluding the value of IRIS INKJET PRINTER (Item No. 2) which was re-exported and duty element settled by Customs. (B) The applicant also produced an amendment sheet issued by Joint ....
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....of Rs. 11,78,746/- within 30 days. The applicant paid the admitted duty liability of Rs. 11,78,746/- vide TR6 Challan dated 20-8-2002 in compliance with the Commission's order. 6. The Applicant vide application dated 22-8-2002 submitted that they have deposited the admitted duty liability and further requested for an out of turn basis for an early final settlement as theirs is a small unit and presently lying closed for want of business and labour problems. They seek release of an amount of Rs. 13,50,000/- lying in the form of Bank Guarantee executed with Customs. The final hearing was held on 22-11-2002. 7. The applicant was represented by Shri T. Viswanathan, Advocate, S. Asif Husain, Director & Yusuf Y. Sabir, Accountant.....
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....n effective Customs duty of 15 per cent. It is seen from the records that for one reason or other the applicant could not fulfil the conditions of this notification. Even though the CIF value covered by the licence is for Rs. 47,60,000/- in view of re-export of a faulty capital goods by the applicant (IRIS Inkjet Printer-5015), the applicant had approached licencing authority, namely DGFT, for reduction in total CIF value and export obligation in view of the re-export of the above said machine. 13. DGFT, vide their letter dated 15-5-2002, approved reduction of the total CIF value by excluding CIF value of IRIS Inkjet Printer-5015. The letter addressed to the applicant is reproduced below :- GOVERNMENT OF INDIA MINISTRY OF COMM....
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....;           (J. C. Babu)                      FTDO, for DGFT Endt. No. 1/36/218/208/AM'02/EPCG-I      Dated Copy to : Jt. DGFT, Mumbai. Above mentioned request of the firm was considered in EPCG Committee in meeting held on 2-5-2002 (Case No. C-19) and the Committee approved the request of the firm for reduction of the total CIF value by excluding the CIF value of the Item No. 2 of the list of CGs viz; "Irish Inkjet Printer" which was re-exported and the duty element was settled by the Customs Authority. The EO will be stand reduced according....
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....iability on IRIS Inkjet Printer-5015 is thus extinguished in view of re-exportation. In this view of the matter, the admitted duty liability as given by the applicant is found to be correct. Accordingly, the Commission orders the terms of settlement under sub-section (7) of Section 127(c) of Customs Act, 1962 as under :- (1) Duty of Customs :- The case of Applicant is settled for an amount of Rs. 11,78,746/- which has already been paid vide TR 6 Challan on 20-8-2002. Thus, the settled duty liability has already been paid by the applicant and no further amount towards duty liability is required to be paid inasmuch as this case is concerned. The Commission orders that the Bank Guarantee executed by the applicant for Rs. 13,50,00....