2005 (8) TMI 210

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....goods worth Rs. 64 lakhs. They were required to produce 500 MT of prawn per year for a period of 10 years with a minimum value addition to 66%. They should earn minimum net foreign exchange of US $ 1,51,94,225 by exporting the entire production over a period of 5 years. They were also permitted to import raw material, components and consumables worth Rs. 2382.99 lakhs and procure indigenous capital goods, raw-material, components and consumables worth Rs. 794.82 lakhs. One of the conditions of the Notification No. 196/94 which was amended on 19-5-99 vide Notification No. 65/99-Cus. was the duty can be demanded for non-fulfilment of export obligation. The Revenue proceeded against the appellants on the ground that they failed to achieve expo....

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....only be for raw materials, components, spares and consumables. The notification clearly excludes capital goods for this purpose. The impugned goods are classifiable under Chapter 8479.89. (ii)      The Ministry in its Circular No. 30/99, dated 25-5-99 has clarified that the duty is demandable only on raw materials, components, spares, etc. other than capital goods for cases of failure to achieve export obligation. (iii)     The legal undertaking to fulfil the export obligation has been made with the Development Commissioner as such it is the Development Commissioner who would be the proper authority to invoke the condition of the legal undertaking and the powers to acquire to invoke the con....

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....the Notification No. 65/99, dated 19-5-99. The condition No. 2 of the original notification was substituted and as per substituted condition 2, the importer shall execute a bond before the Assistant Commissioner of Customs to fulfill the export obligation. Thus after the amendment of the notification, the importer directly executes a bond with the Customs for fulfilment of export obligation. In other words, the fulfilment of export obligation has become a condition of the exemption Notification No. 196/94-Cus. Non-fulfilment of condition of exemption notification will make the goods liable for confiscation under Section 111(o) of the Customs Act, 1962. The Ministry of Finance issued a Circular No. 30/99-Cus., dated 25-5-99. In the said Circ....