TaxTMI 
TaxTMI 
2016 (9) TMI 218
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.... that the appellant imported capital goods under various bill of entries under Notification No. 110/95-Cus. under EPCG Scheme. The appellant failed to achieve desired export obligation at the end of second year i.e. 10%, hence the duty of Rs. 1,35,894/- along with interest of Rs. 88,461/- was recovered from the appellant on 1.11.1998 in terms of clause 3 of the Notification. Subsequently, the appellants were called upon to pay duty of Rs. 22,51,034/- with interest at the rate of 24% for the balance amount. In the adjudication, the demand of Rs. 22,51,034/-+ interest at the applicable rate from the date of clearance of the first consignment till the date of payment of duty was confirmed. Against the aforesaid original order dt. 20.1.2004, th....
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....firmed in the adjudication order, no reasoning was given why the enhanced duty was confirmed. He further submits that the appellant had executed the bond along with the Bank Guarantee for an amount of Rs. 6,79,468/- and in the event of non-fulfillment of export obligation, the department was free to encash this bank guarantee therefore interest at least on Rs. 6,79,468/- is not payable . He further submits that the demand was raised after the normal period as provided under Section 28 of the Customs Act, 1962, therefore the demand is hit by limitation. He further submits that the appellant have already paid substantial portion of demand of Rs. 12,00,000/- during the period 31.10.2006 to 17.3.2006, which may be considered for quantifying the....
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....S 1. Bill of Entry No. & Date : 11625 dt. 28.09.95 2. Name of Vessel : Lal Bahdur Shahstri 3. Country of Origin : U.K. 4. EPCG Licence No. & Date : PCG 2134314/C/XX/36/01/05 dt. 01.06.95 5. Assessable Value : Rs. 60,39,711/- 6. Duty Saved : Rs. 13,58,935/- 7. Description of Goods : Microgrinding Mill, Turbomiter, Rotational Moulding Machine, Single station Moulding, Machine, Electric & Finishing Tools, Moulds, forged steel, Galvansed Handles & Burners. From the above, it is clear that there is an apparent error in mentioning the total duty foregone Rs. 23,86,928/- in notice dt. 23.8.2002 which should be Rs. 13,58,935/-. Accordingly the correct balance duty recoverable should ....
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.... and demand is not hit by limitation. This issue was considered and settled in the case of Commissioner of Customs (Import), Mumbai Vs. Jagdish Cancer & Research Centre 2001 (132) E.L.T. 257 (S.C.). In view of this Honble Supreme Court judgment the demand does not get time barred. As per our above discussion, we are of the view that the appellant is prima facie entitled for reduction in demand as discussed above. Therefore, the matter needs to be remanded for limited purpose of re-quantification of the demand of duty and interest and also for appropriation of the duty already paid by the appellant after verification thereof. The appeal is allowed by way of remand to the original adjudicating authority, who shall pass a de novo adjudication....
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....35,894/- (for II Block) 3) Balance duty recovereble Rs. 12,23,041/- + interest. 24% from the date of clearance first consignment Total = Rs. 12,23,041/- + Interest @ 24% from the date clearing of first consignment The said party had, at the time of clearance of the said goods, made a Declaration before the Asstt. Commissioner of Customs binding itself to pay on demand an amount equal to the duty leviable on the said goods but for the exemption contained in the said Exemption Notification in respect of which the condition specified in Column (2) of the table annexed to the said Exemption Notification have not been complied with. Inspite of the export obligation period having been over, the said pa....
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....onditions of the said Exemption Notification. Sl. B/E No. and date No. 1. 11625/28.09.95 2. 4595/14.11.95 3. 4594/14.11.95 4. 3966/12.12.95 Duty forgone subject to strict compliance with the terms & conditions of the said Exemption Notification. 1) Total duty foregone Rs. 23,86,928/- 2) Duty paid alongwith interest Rs. 1,35,894/- 3) Balance duty recovereble Rs. 22,51,034/- + 24% from the date of clearance first consignment TOTAL Rs. 22,51,034/- + Interest @ 24% from the date clearing of first consignment The said party had, at the time of clearance of the said goods, made a Declaration before the Asstt. Commissioner of Customs binding itself to pay on demand an amount equal t....