2004 (10) TMI 364 - AT - Customs

Summary

Issues:
1. Confirmation of duty demand and penalty imposition against the appellants for imported raw material.
2. Denial of benefit of Customs Notifications due to alleged non-discharge of export obligation.
3. Certification by Joint DGFT confirming full discharge of export obligation by the appellants.
4. Discrepancy between JDGFT's certification and the department's stand.
5. Grounds for denial of exemption including lack of manufacturing facility.
6. Decision to grant waiver of pre-deposit and stay of recovery.
7. Request for early disposal of the appeal.

Analysis:
1. The adjudicating authority confirmed a duty demand of over Rs. 73 lakhs against the appellants and imposed an equal penalty for importing Stain Steel Coils under the DEEC scheme. The denial of Customs Notifications' benefit was based on the alleged non-fulfillment of export obligations by the importer.

2. The Joint DGFT, in Order No. 30 of 2004, certified that the appellants had fully discharged their export obligations as per relevant advance licenses. The JDGFT's observation highlighted the futility of reopening cases where export obligations were already met, contradicting the department's stance. The JDGFT's order, unchallenged, indicated that the appellants fulfilled their obligations and deserved exemption under Customs Notifications.

3. The Customs authorities also cited the lack of a manufacturing facility for a period as a reason to deny exemption. However, the JDGFT's order confirmed the presence of the required manufacturing facility during the relevant period, undermining this ground for denial. The appellants' case for waiver of pre-deposit and stay of recovery seemed strong based on these findings.

4. Considering the circumstances, the tribunal inclined to grant the waiver and stay as requested by the appellants. Both sides sought early disposal of the appeal, which was agreed upon, scheduling the hearing for 4-11-2004.