2008 (10) TMI 402 - AT - Central Excise

Summary

Issues involved: Stay applications against the order of the Commissioner demanding customs duty, central excise duty, and penalty from M/s. Dinesh Agro Products Limited.

Summary:
1. The appellant, a 100% EOU, imported goods without duty payment under specific notifications. They failed to fulfill export obligations and stopped manufacturing activities, leading to demand for duty and penalties.

2. The appellant argued that non-fulfillment of export obligation is not a violation of legislative provisions but only of a notification, for which demand cannot be made until the export period is over. They cited relevant Tribunal decisions and Supreme Court rulings.

3. The appellant contended that non-extension of bond and bank guarantees are curable defects and do not violate substantive conditions unless guarantees are not extended at all.

4. The Department highlighted that the appellant's unit was closed down, machinery rusted, and export obligations unmet. The appellant did not seek debonding permission and showed no intention of manufacturing or exporting.

5. The Tribunal found the appellant's non-fulfillment of export obligation evident, with no efforts to extend guarantees or fulfill obligations. A pre-deposit of Rs. 1,25,00,000 was directed towards duty, with waiver of the balance amount pending appeal disposal. Compliance was to be reported by a specified date.

*(Pronounced on 14-10-2008)*