2004 (11) TMI 355 - AT - Customs

Summary

Issues:
1. Confirmation of demands and penalty under the Customs Act
2. Failure to fulfill export obligation
3. Violation of Principles of Natural Justice
4. Consideration of BIFR's order by the Commissioner of Customs

Analysis:
1. The appeal stemmed from an order confirming demands and imposing a penalty under the Customs Act due to the appellants' failure to fulfill the export obligation as per a bond executed by them and Customs Notification No. 79/95-Cus., dated 31-3-1995. The Commissioner decided the matter ex parte as the appellants did not appear, leading to the imposition of penalties and interest. The appellants sought adjournment citing proceedings before the BIFR.

2. The learned Counsel argued that the BIFR had issued Order No. 327/99 directing various authorities, including the DGFT, to consider the appellants' requests for extension of export obligation period and bond extensions for past imports. The Counsel contended that the impugned order was unsustainable in light of the BIFR's directives and should be reconsidered by the Commissioner in accordance with the BIFR's order.

3. The Tribunal deliberated on the matter and concurred with the Counsel's submission that the Commissioner's order violated Principles of Natural Justice by not hearing the appellants. Moreover, the BIFR's order mandated a reevaluation of the case by the Commissioner, considering the directions to extend export obligations and waive interest on bonded materials. The Tribunal agreed that the Commissioner should await the DGFT's response as per the BIFR's order before making a decision.

4. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner for a fresh consideration in line with the BIFR's directives. The Commissioner was instructed to await the BIFR's orders and adjudicate the case accordingly. The decision highlighted the necessity of adhering to the BIFR's directives and ensuring a fair and just process in the adjudication of the matter by the Commissioner of Customs.