TaxTMI 
TaxTMI 
2017 (4) TMI 1044
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....orted various inputs under Advance License, in terms of Customs Notification No.93/2004 dated 10.9.2004, which allows imports at nil rate of duty subject to the importer fulfilling the export obligation and the other conditions prescribed in the license. They also executed bond with the Customs. As the respondent could not produce export obligation discharge certificate (EODC) from the DGFT, establishing that the export had taken place, proceedings were initiated against them by way of show cause notice dated 2.4.2013 demanding the entire duty foregone in respect of imports. The said Show cause notice culminated into an order passed by the original adjudicating authority, who confirmed the demand along with interest and imposed penalty on t....
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....d allowed for fulfillment of export obligation. As such, he held as under: "9. I find that the conditions with respect to the discharge of EO as extracted above states that i) EO should be discharged as per the license and; ii) the importer should produce evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs. Thus the confirmation of demand on the ground of non submission of EODC issued by DGFT treating it as a violation of Notification 93/2004-Cus dated 10.9.2004 is not sustainable and thus OIO needs to be set aside on this ground alone. " He also relied upon the Hon'ble Supreme Court decision in the case of Commissioner of Customs, Hyderabad vs. Penner ....
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....e liable to pay the differential duty along with interest." 6. Being aggrieved with the said order, Revenue filed the present appeal. Learned AR appearing for the Revenue draws our attention to Chapter 4 of the Foreign Trade Policy which deals with the Advance Authorization Scheme and Duty Exemption Scheme and in terms of the said scheme, the importer is required to produce EODC certificate and the Customs shall verify that the details of the export as given in the discharge certificate as per their records. It stands argued before us that there is no provision which empowers the Customs department to redeem the advance license issued by DGFT. 7. We find that the issue in the present case is not redemption of the advance license which und....