2026 (3) TMI 600

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....n fine and penalty on the Appellant for their failure to fulfil the export obligation against capital goods imported under EPCG scheme. 3. The facts in brief are the Appellant had imported various capital goods under Bills of entry dated 28.06.2011 and 16.06.2011 against EPCG Authorization No. 0730010120 dated 11.05.2011 and under EPCG Authorization No. 0730010127 dated 13.05.2011. The goods were imported subject to the condition that the Appellant shall fulfil the mandated export obligation. However, Appellant failed to comply with the conditions no. 2(8) of the Notification No. 102/2009-Cus dated 11.09.2009 and for the failure to comply with the conditions, proceedings were initiated to recover the customs duty along with interest. A s....

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....re and supply their manufactured goods to 100% EOU units / SEZ units. The approval (allotment letter) for the industrial site was issued by KIADB  on 15.12.2009. Eventhough the capital goods against the EPCG Authorization were imported by the appellants during June 2011, the same had to be stored in a warehouse for nearly nine months due to lack of infrastructure facilities like road and power supply which was provided by KIADB only during February 2012. The tardiness on part of KIADB and BESCOM resulted in heavy losses and cancellation of orders by the customers. Although the production eventually commenced during early 2013, the prospective buyers who had earlier evinced keen interest in buying the appellants' goods were no more ....

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....Rajyalakhımı Labs Ltd. Vs. Commr. of Cus. & C.Ex, Hyderabad [2007 (208) E.LT 398 (Tri-Bang)] wherein it was held as under; "6.2......As regards the confiscation of the impugned goods, it should be noted that once the differential duty is paid, the appellant goes out of this EPCG scheme. In that view of the things, there is no question of fulfilment of any condition of the Notification. Once full duty is demanded, the appellant cannot be penalized by confiscation of the capital goods. Therefore, confiscation under Section 111(0) of the Customs Act is not sustainable and the same is set aside. Hence, redemption fine is also not imposable..." (b) FAL Industries Ltd Versus Commissioner of Customs, Chennai [2008 (231)....