2012 (4) TMI 368 - AT - Central Excise

Stay Petition for waiver of pre-deposit on differential duty on the goods imported - department foregone the duty liability as appellant has not reported the export obligation and has not used the said goods in the manufacturing of the goods - claim of the appellant was verified by the Revenue which indicates that the appellant had exported the goods either through the merchant exporter or through another 100% EOU Held that - The issue of non-fulfillment of export obligations has to be considered from the factual matrix of the export, hence the issue needs to be re-considered by the adjudicating authority in its proper perspective - set aside order and to re-consider the issue afresh.

Summary

Issues:
Waiver of pre-deposit of differential duty on imported goods due to non-fulfillment of export obligations.

Analysis:
The Stay Petition was filed seeking a waiver of pre-deposit of Rs.12,02,338/-, which was confirmed as differential duty on imported goods. The Customs department had foregone the duty liability because the appellant did not report the export obligation or use the goods for manufacturing to fulfill export obligations. The Tribunal allowed the Stay Petition and took up the appeal for disposal due to the narrow compass of the issue.

Analysis:
During the hearings on the matter, it was revealed that the appellant had exported the goods through merchant exporters and 100% EOU, contrary to the claim made before the lower authorities. The Revenue verified this claim and confirmed the export through the office of Assistant Commissioner. As the issue of non-fulfillment of export obligations needed to be reconsidered based on the factual matrix of the exports, the Tribunal set aside the impugned order. Without expressing any opinion on the merits, the Tribunal remitted the matter back to the adjudicating authority for a fresh consideration following the principles of natural justice.