2014 (11) TMI 816

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....as under:- 3. The appellant is engaged in the business of manufacture and sale of yarn. The appellant had applied for and obtained Export Promotion Capital Goods licence ('EPCG licence' for short) dated 14-1-1998, with obligation to export goods 6 times the CIF value of the capital goods imported. At the relevant time, there were two types of EPCG licences namely 10% basic duty EPCG licence (10% Basic duty + Nil CVD) and zero duty EPCG licence ('Nil' Basic duty + 10% CVD). The appellant opted for zero duty EPCG licence. Para 6.3 of the Foreign Trade Policy as well as condition NO.5 of Notification NO. 29/97 governing zero duty EPCG licence provided that the minimum CIF value of capital goods to be imported under zero duty E....

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....ms, EPCG issued 'No Dues' certificate and the Foreign Trade Development Officer by his communication dated 21-4-2006 informed that the appellant has fulfilled the export obligation by exporting goods 6 times the value of the capital goods imported and that they can approach the customs authorities for release of BG/LUT executed by the appellant. 7. IN the meantime, by an order-in-original ('OIO') dated 27-2-2001, one of the show cause notice was adjudicated and it was held that the failure to import capital goods worth Rs. 20 crores under zero duty EPCG licence was in violation of condition NO. 5 in Notification No. 29/97 and, therefore, the appellant was liable to duty, interest and penalty. 8. The appellant challenged th....