2011 (3) TMI 1517 - AT - Customs

Summary

Issues involved: Two appeals by M/s Onkar International Pvt. Ltd. against demand of duty, interest, and penalty, and two appeals by Shri Jayant Malhotra and Shri A.K. Gupta against penalty under Section 114A of the Customs Act, 1962.

M/s Onkar International Pvt. Ltd. appeals: The company imported cars under the EPCG Scheme but allegedly misused them by not using them for the intended purpose. It was claimed that export obligations were fraudulently fulfilled using foreign exchange earned from air ticketing services, and one car was sold in violation of EPCG Scheme conditions. The appellants argued that they fulfilled export obligations and obtained Export Obligation Discharged Certificate (EODC) from DGFT, thus complying with the law. The Tribunal found that the appellants fulfilled their obligations under the EPCG license, as confirmed by the DGFT, and set aside the order, citing a similar precedent.

Shri Jayant Malhotra and Shri A.K. Gupta appeals: The individuals appealed against the imposition of penalties under Section 114A of the Customs Act, 1962. The Tribunal found in favor of the appellants, stating that they had fulfilled their export obligations and obtained the necessary certificates from the DGFT, following the provisions of the law. The decision was based on a similar case precedent, and all four appeals were allowed with consequential relief.