TaxTMI 
TaxTMI 
2025 (4) TMI 73
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....173/2017 has been filed by M/s. Keshava Medi Devices Private Limited (Appellant A1) assailing the impugned Order-in-Original No. 58645/2017 dated 27.09.2017 passed by Commissioner of Customs, Chennai-IV confirming the demand of differential Customs duty of Rs.60,71,115/- and appropriating the amount already paid towards above demand, besides ordering for payment of interest and imposing a penalty of Rs.20,00,000/- under Section 112(a) of the Customs Act, 1962 (ACT) and ordering for confiscation of goods under Section 111(o) ibid with an option to redeem the goods on payment of redemption fine of Rs. 20,00,000/- under Section 125 ibid. 1.2 Customs Appeal No. C/41291/2018 has been filed by M/s. Keshava Fabrics Pvt. Ltd. (Appellant A2) assa....
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....icable interest in terms of Notification No. 97/2004-Cus. dated 17.09.2004 and for imposition of penalty, besides rendering the goods imported liable for confiscation. A Show Cause Notice dated 29.09.2016 was issued to the Appellant and the adjudicating authority confirmed the proposals put forth and imposed penalty /redemption fine, besides appropriating the amount paid towards demand. Being aggrieved, the Appellant has filed this appeal before this forum. 2.2.1 In appeal C/41291/2018, the Appellant A2 have imported certain Capital goods, at concessional rate of customs duty, availing benefits under the Export Promotion Capital Goods Scheme in terms 0930003699/3/11 dated 12.12.2007 issued in the name of M/s. Keshava Fabrics by the DGFT,....
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....tative on behalf of the Department referred to the written submissions of the Ld. Counsel and concurred that the dispute was settled under the said amnesty scheme. 4. Heard both sides and carefully considered the rival submissions and evidences on record. 5. The issue that arises for consideration in these appeals is whether the fine and penalties imposed for non-fulfilment of export obligation in the impugned Order-in-Original No. 58645/2017 dated 27.09.2017 and Order-in-Original No. 62978/2018 dated 19.04.2018 would survive or not on production of EODC/Final duty Paid Regularization Letter issued by DGFT under the amnesty scheme on full payment of appropriate customs duty along with interest? 6. We find that the Government announ....
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....t has to be pointed out that the investigations were made against the appellants for non-fulfilment of export obligation for duty free import of capital goods under EPCG within the stipulated time periods and as the appellants have obtained the EODC issued by the DGFT under the amnesty scheme, the cause of action no more survives. 7. Further, the Ld. Counsel for the Appellant has relied upon the decision of the Hon'ble Kerala High Court in the case of M/s. Sujee Colour Printers Vs. DGFT, New Delhi, Commissioner (CBIC) [2025 (3) TMI 748] in Writ Petition No.31055 of 2024 dated 08.10.2024 wherein it has been held that: - "i) The Appellant having regularized the export obligation by paying the duty and interest under the Amnesty Sc....
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....oms Duty. (Emphasis is supplied) viii. Based on the evidence of such payment and other relevant documents as prescribed under the Handbook of Procedures, concerned RA may examine the request and issue a letter granting Export Obligation Discharge Certificate (EODC). ix. Even cases which have already been adjudicated (or pending adjudication), either originally or in appeal, can also be regularized under this Public Notice. The procedure for regularization of such cases would be as under:- a. In respect of cases which have already been adjudicated (or pending adjudication) and where appeal has not been filed, firms will produce a copy of this closure letter from the concerned RA, to the Adjudicating Authority. ....
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....mport goods without paying the full amount of customs duty. In terms of the Amnesty Scheme, the petitioner has to pay the entire amount of duty foregone along with interest up to the date of payment. On payment of the total amount of duty along with interest, it must be deemed that the petitioner has not availed the benefit of the EPCG Scheme. If that were the situation, the liability to achieve export obligation would be discharged, and no penalty/fine could be imposed on the petitioner. Therefore, I hold that the fine imposed under Section 112 (a) of the Act in lieu of confiscation under Section 111 (o) of the Act cannot be recovered from the petitioner. This writ petition is thus allowed in terms of prayer No.(b) in the writ petition." ....