2025 (5) TMI 1037

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....hs under section 112(a) of the Customs Act, 1962 [the Customs Act]. 2. The appellant is engaged in the manufacture and printing of cartons used in pharmaceutical sectors. The appellant imported four goods at 5% concessional duty under the EPCG Authorization dated 28.04.2004 in terms of Notification dated 01.04.2003. In lieu of the duty foregone, the appellant was under obligation to make exports amounting to Rs. 15,47,06,904/- in eight years from the issue of the Authorization. The appellant could not fulfil the export obligation and a show cause notice dated 12.04.2018 was issued to the appellant. The appellant filed a reply contesting the demand proposed in the show cause notice but the Principal Commissioner by order dated 29.11.2019 ....

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....ral Excise [Customs Appeal No. 42173 of 2017 decided on 28.03.2025]. 7. Learned authorized representative appearing for the department, however, supported the imposition of penalty. 8. This appeal, in view of the order passed under the Amensty Scheme, is confined to the imposition of penalty under section 112(a) of the Customs Act. 9. The Kerala High Court while examining a similar issue in Saji Sukumaran Nair observed as follows: "It is clear from Ext.P1 that the sum of Rs.50,23,802/- represents the entire amount of duty forgone under the EPCG Scheme. Rs.13,35,689/- represents the interest payable on the said amount. The learned Standing Counsel appearing for the Customs Department does not dispute this. If that be the ca....