2016 (9) TMI 218

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....der 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, the appellant filed appeal before the Commissio....

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....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 final demand. 4. On the other hand Shri M.K. ....

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.... 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 be Rs. 12,23,041/- whereas incorrect amount of Rs. 22,51,034/- was proposed in the same was confi....