2006 (8) TMI 86

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....llants have raised a common question about imposition of penalty for not fulfilling the export obligation. 3. M/s. Pharmed Chemicals Limited, having their factory at Sipcot Industrial Area, Hosur, Tamilnadu and their office at Pharmed Gardens, White- field Road, Bangalore have imported several consignments of chemicals have imported 1050 kgs of Pivaloyl Chloride vide Bill of Entry No. 006662-IM....

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....C amounting to Rs. 48,716/- and imposition of penalty on all of them. 4. On adjudication of the matter, the benefit of duty free clearance of 1050 kgs. of pivalosrl chloride imported against advance license was denied, customs duty of Rs. 48,716/- along with interest @24% under Section 28AB was confirmed, the penalties were imposed on the two Directors namely, Shri Sandeep Aurora and Shri K.K. ....

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....on. As chemical was likely to lose shelf- life, therefore in view of the same they were left with no alternative but to sell the same in the local market. The orders itself clearly brings out that appellants had no mens rea in not fulfilling export obligations. The penalty is not imposable on the appellants consequently set aside the same. 5. The above said decision is also supported by the oth....