2013 (11) TMI 1426

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....llant-Company. The third appellant Shri K . Nityanada Reddy was the Managing Director of the said appellant-Company. During the period Apr.'02 to Dec.'05, the appellant-Company had obtained twenty advance licenses and imported goods using such licenses without payment of customs duty undertaking to discharge export obligations specified in each such advance license. Due to certain reasons, the appellants did not meet the export obligations accepted by them while importing the goods free of customs duty, within the time frame specified in the Exim Policy and the corresponding Notification No.43/2002-Cus., dated 19.04.2002. Consequently, show-cause notices were issued proposing recovery of customs duty exemption availed at the time of import ....

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.... have already paid Rs. 2,00,71,655/- towards duty and interest before issue of Show Cause Notice. 3. In respect of five licenses figuring in para 15 and 16 of the impugned order [S. No. 6 of para 15 and S.Nos.1, 4, 6 & 7 of para 16], it is their contention that they had requested the Director-General of Foreign Trade for conversion of the obligations under these licenses into obligation for an Export Oriented Unit and DGFT has given the necessary permission for such conversion, exports have been made and Export Obligation Discharge Certificates have also been obtained and, therefore, there should not be any demand of duty, fine or penalty in respect of materials imported under these licenses. 4. In respect of the two licenses, namely,....

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....t Contested 03 910016725 09.12.2003 Not Contested 04   910017076   12.01.2004   Not Contested except for minor errors 05 910017229 27.01.2004 Not Contested 06   910017631   01.03.2004   Converted into obligation under EOU Scheme and EODC issued by DGFT 07   910014991   09.07.2003   Not Contested   08   910017111   14.01.2004   Not Contested except for minor errors 09   910016501   14.11.2003   Not Contested except for minor errors 10 910011646 27.01.2005 Not Contested 11 910023022 01.06.2005 Not Contested ....

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....an be imposed in this type of cases. 8. He has further submission that if at all any penalty is imposable, the penalty has been imposed without taking into account the genuine difficulties faced by the appellants that is the drastic change in market conditions which was beyond the appellants control. According to the appellants penalties are imposed as if there was an intention to avoid payment of duty which was not the case and he pleaded for a more lenient approach in the matter of imposing penalties. 9. We have heard the Ld AR for Revenue also in the matter. He is not in a position to appraise fully on the development after adjudication with reference to each of the 20 licenses because such details need careful verification by adj....