2007 (10) TMI 207

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....t payment of duty. The duty forgone amounts to Rs. 4,00,158/-. In terms of the Notification No. 196/94-Cus., dated 8-2-1994, they were required to fulfil the export obligations. However due to various circumstances, the Respondents could not fulfil the export obligations and the Development Commissioner, Visakhapatnam cancelled the Letter of Permission (LOP) granted to them, in his letter dated 31-3-1995. However the Revenue initiated proceedings against the Respondents to recover Customs duties by issue of a Show Cause Notice dated 21-11-2001. The Original authority passed the order confirming Customs duty amounting to Rs. 4,00,158/-. He confiscated the impugned goods and imposed redemption fine of Rs. 50,000/-. A penalty of Rs. 10,000/- w....

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....xport obligations. He invited the Bench's attention to the Hon'ble Apex Court's order according to which all the Aqua Culture units in the Eastern Coast had to be closed in view of the costal Regulations. Further he pointed out that in spite of the best efforts of the Respondents there were 5-6 crop failures as a result, the Respondents could not fulfil the export obligations. However, he pointed out that it was wrong on the part of the Revenue to hold that there was no commercial production. In fact, he said commercial production commenced from 1995 and the goods produced were sold to the other units which exported the same. In the light of this, he said that it was wrong on the part of the Revenue to hold that they were not entitled for t....