2026 (5) TMI 1613

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....arkness, winter and spring come and go, even the course of time is playful but truth remains and sparkles when justice is done."             - Hon'ble Supreme Court in Dharam Pal Vs. State of Haryana and Ors., - (2016) 4 SCC 160 ***** This appeal challenges Order-in-Appeal No. 71/2016-TTN (CUS) dated 02.06.2016 passed by the Commissioner of Customs (Appeals-II), Trichy, (impugned order). An apercu of the facts. 2. The appellant imported one Mitsubishi Sheet Fed Offset Printing Press under the EPCG Scheme vide Bill of Entry No. 422779 dated 31.10.2007 at concessional duty. Under the EPCG Scheme and Notification No. 97/2004-Cus dated 17.09.2004, the appellant was required to discharge export ....

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....Rs.12,17,580/- on 08.12.2014, thereby discharging the entire differential duty, which has been appropriated in the OIO. Interest of Rs.23,68,826/- was also paid on 23.12.2015, vide challan No 71293, before issue of OIO. C. A show cause notice dated 22.05.2015 was issued alleging suppression, followed by the order dated 12.10.2015 confirming the proposals. D. Mere non-fulfilment of export obligation does not justify confiscation or penalty, particularly where there is no diversion or misuse of the imported capital goods. Reliance was placed on Commissioner of Customs v. Sun Knit Wear Pvt. Ltd. [2012 (278) ELT 165 (Kar.)], Fal Industries Ltd. Vs CC, Chennai [2003 (159) ELT 215 (Tri.-Chennai)] and [2008 (231) ELT 524 (Tri.-Ch....

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.... Revenue submitted that: A) The appellant availed concessional duty under the EPCG Scheme and was required to fulfill the prescribed export obligation within the stipulated period under the Foreign Trade Policy and Notification No. 97/2004-Cus. B) Since the appellant failed to meet the export obligation and did not comply with the timelines for submission of proof or payment of differential duty with interest, they were not entitled to the notification benefit. C) It was further submitted that this violation rendered the goods liable to confiscation under Section 111(o) of the Customs Act, 1962, and also attracted penalty under Section 112. D) The plea of adverse market conditions and prior payment of dut....

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....any allegation of willful evasion and for merely not fulfilling export obligation is shocking, unwarranted and ought to have been avoided. 8. The Apex Court in Hindustan Steel Ltd Vs State Of Orissa [AIR 1970 SUPREME COURT 253, 1970 (1) SCR 753], examined the imposition of penalty on a technical or venial breach of the provisions of a statute and held as under: "An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceeding, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. Penalty will not also be imposed mere....