2016 (10) TMI 441

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....y of 10%, subject to certain conditions, including that of export obligation, under notification no. 28/1997 dated 1st April 1997. Export obligation under the licence, as prescribed in the Foreign Trade Policy issued under the Foreign Trade (Development & Regulation) Act, 1992, was US $ 3,92,940/- (i.e. Rs. 1,67,78,538/-). 2. Bill of entry no. 423/98 dated 8th September 1998 was filed at Customs Freight Station, Pune and the goods cleared on 28th November 1998 after furnishing bank guarantee of Rs. 8,13,424/- being 50% of duty foregone of Rs. 16,26,847/- 3. Appellant was proceeded against on two counts vide two different notices  the first for failure to comply with condition no. 5 of notification supra which requires the install....

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.... exist. 5. Learned Authorised Representative drew attention to the conditions of the notification supra which had allegedly been contravened and pointed out that it is now well-settled in law that exemption notifications are to be implemented strictly. The decision of the Hon'ble Supreme Court in Commissioner of Customs, Hyderabad v. M/s Pennar Industries Ltd & Anr [2015-TIOL-162-SC-CUS] was cited in support. 6. Though the alleged contraventions are linked to exemption from duty under section 25 of Customs Act, 1962, it must be borne in mind that this exemption notification is a consequence of a scheme of the Foreign Trade Policy and the conditions in the said notification merely reflect the conditions in those schemes as notified in ....

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....re, necessary amendments are needed in such notifications making appropriate provisions to meet these types of eventualities. We are hopeful that the competent authority shall look into these aspects and cater for such situations as well so that unnecessary hardship is not caused to the bona fide assessees as well." 8. Further, in that judgment, the Hon'ble Supreme Court noted that there are various conditions, of which some were relaxed or condoned but without impact on the particularly crucial condition in the exemption notifications viz. usage to which the imported goods were to be subjected, which remained unfulfilled and liable to action under the Customs Act, 1962. While acknowledging that the Director General of Foreign Trade was ....