TaxTMI 
TaxTMI 
2025 (3) TMI 326
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....er Chapter sub-heading 49011000 of the first schedule of Central Tariff Act, 1985 and export them under bond. 2. The brief facts are during audit of the records of the assessee by Customs audit, it was noticed that the appellant had not received foreign currency of Rs. 47,68,477/- in respect of exports made in the year 2006-07; they have written of Rs. 6,08,729/-as bad debt during the year 2006-07 against export sales; further in the Annual Performance Report (APR) for the year 2008-09, they have not recovered some outstanding foreign exchange against export sales; when the foreign exchange is not received the duty foregone in the inputs should be remitted and accordingly, the appellant was made to pay duty foregone amount of Rs.2,63,930/-....
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....s rejected the refund claim of Rs. 4,41,598/-. 5. On appeal before Commissioner (Appeals), Commissioner (Appeals) has upheld the rejection of the refund claim by the adjudicating authority holding that; the EOU unit has given undertaking to achieve net foreign exchange earnings and in case of failure to achieve, binding itself to pay on demand the duty foregone; EOU has to follow procedures and conditions laid down in FTP and the very purpose of this scheme is to earn foreign exchange and when it is not achieved it leads to violation of the provisions of law and the duty was correctly demanded; the action taken by RBI is not relevant to the action taken by the department of Customs/ Excise; the principles of natural justice have been follo....
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.... not realized during this period and an amount of Rs. 6,08,729/- was written as bad debt. 7. During the hearing the learned Chartered Accountant (CA) submitted that they have achieved the NFE during the disputed period 2006-07 to 2009-10 and that Notification Nos.23/2003-CE and 52/2003-Cus. only provides that EOU has to earn positive net foreign exchange; the Order-in-Appeal concluded that NFE is not achieved without verifying the details; further above Notifications do not require realization of foreign currency for each export shipments and hence in the absence of a specific condition the same cannot be read into the Notification; since the goods have been physically exported which is not disputed the duty reversal is not required. 8. T....
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....ds/waste into DTA, improper removal from bonded warehouse, entitlement to deemed export and remission of duty and that the case of the appellant is with regard to consumption of inputs, where export proceeds have not being realized and therefore the decisions cited by the appellant were not found relevant to the issue and therefore were not considered. We find that the appellant in the appeal and during the hearing also has relied on the same case laws. We find that it is an undisputed fact that the appellant has not realized foreign exchange for the exports made during the year 2006-07 to the extent of Rs. Rs. 47,68,477/-and they have also written off of Rs. 6,08,729/-as bad debts. The appellant contends that they have achieved positive NF....