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TMI Blog2002 (5) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIF value within a period of 5 years. Import of capital goods were effected under Notification No. 160/92 with effected customs duty @ 15% as against normal duty of 25% BCD + 10% CVD. The Applicant in Col. No. 12 of the application indicated the additional amount accepted as payable as Rs. 1,27,67,809/-. 4. The Application was allowed to be proceeded with under Section 127C of Customs Act, 1962 and the admitted duty liability was allowed to be adjusted, from the amount of Rs. 1,42,90,000/- already realised by Revenue by encashment of Bank Guarantee, vide Interim Order No. 4A/2001-Cus., dated 27-8-2001. 5. In the interim hearing the Revenue pointed out that the statement made by the Applicant of having fulfilled 30% of E.O. has to be substantiated by a certificate from the Licensing Authority. The Applicant vide their letter dated 19-3-2002 enclosed the certified copy of letter F. No. 20/1275/94/EPCG III, dated 13-3-2002 issued by DGFT, New Delhi indicating the shortfall of 71.06% in EO, the details of which are as under : (a) CIF value allowed : Rs. 14,28,66,241/- (b) CIF value utilised : Rs. 14,08,84,507/- (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2001. In this connection, they placed reliance on a letter dated 13th March, 2002 of the Licensing authority who confirmed that the Applicant had fulfilled export obligation to the extent of 28.04% and accordingly they are entitled to the proportionate benefit of reduction in the duty payable by them. 10. The Bench observed that the Applicant had confused the issue of their liability on account of CV Duty payable by them by wrongly showing it as Revenue neutral. The application before the Commission was for settlement of the liability of Customs duty and the question whether any Modvat was available on any part of that duty was not the subject matter of either the show cause notices issued or the case before the Commission arising out of the applications made. 11. In response, the ld. Advocate pointed out that they had not suppressed any facts from the Commission and that they had clearly pointed out the total duty payable by them but restricted their acceptance to pay only the basic Customs Duty under a plea that the CV duty in any case would be modvatable. 12. The Bench observed that the question of grant of Modvat credit on the CV duty is a matter to be decided by the Juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Vitrified Unglazed Polished tiles from China and UAE for more than a year and a half. This has resulted in the Applicant s company incurring heavy losses. So far they have incurred a loss of Rs. 722.14 lakhs in the financial year 2000-01 There is no improvement in the situation even now. Since they have to pay the balance duty liability of Rs. 1,28,44,660/- within 30 days of receipt of final order, they have requested that they may be allowed payment on installment basis of the above amount. They have forwarded by their letter dated 16-4-2002 that they would pay Rs. 28,44,660/- in the month of May, 2002 and from June, 2002 they would pay Rs. 10 lakhs each in ten equal installments. They also by this letter requested that instructions may be issued to Customs Department to issue requisite certificate evidencing the payment of CVD on month to month basis so that the Applicant can claim the benefit of Cenvat credit. They also undertook to pay interest at the simple rate of 18 per cent per annum on month to month basis along with payment of installments Further they submitted that in case the cash flow of the company improves, they would like to pre pay the duty liability to the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (l) Total dues payable (i+j+k) : Rs. 5,57,04,620/- l the amount of interest on Rs. 1,28,44,660/- has to be paid from the date of 1st import up to the date of payment. 3. You are requested to pay the above dues to the Asstt. Commissioner of Customs, Mumbai in their Head of Account of Customs Revenue i.e. 0.37-Customs - 1 Import Duties (I) Revenue Duties under intimation to this office within 30 days of this letter, failing which action will be initiated under FT (D R) Act. Yours faithfully, Sd/- (G.L. MONGA) Foreign Trade Development Officer, For Director General of Foreign Trade Endt. No. 20/1275/94/EPCG. III/662 dated 13-3-2002 Copy forwarded for information and necessary action :- 1. The Asstt. of Commissioner of Customs (Export Promotion), EPCG.Section, New Customs House, Ballard Estate, Mumbai 400 038 2. Jt. Secretary (Drawback), M/o. Finance, D/o. Revenue, Jeevandeep Building, New Delhi. 3. O/o. of Settlement Commissioner, Additional Branch, Customs Central Excise, Mumbai, Utpad Shulk Bhavan, Bandra-Kurla Complex, Bandra (East), Mumbai-400051. In the LUT executed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be appropriated towards the duty payable by the Applicant and the balance amount of Rs. 1,28,44,660/- to be paid in eleven installments. The first installment of Rs. 28,44,660/- should be paid within thirty days of receipt of this order as required under sub-section (7) of Section 127C of the Customs Act, 1962. The balance amount would be paid in ten equal monthly installments of Rs. 10 lakhs each starting from the month of June, 2002 and ending in March, 2003. They would also pay interest at the simple rate of 18 per cent per annum starting from May, 2002 along with payment of installments. The Customs authority will give acknowledgement of receipt of duty paid by the Applicant as per this order. The jurisdictional Central Excise authorities may consider granting of Modvat credit if the provisions under Central Excise Act, 1944 so permit. 22. The Commission finds that the Applicant has made full and true disclosure of their duty liability and have disclosed full fact relating to the liability arising out of the exemption in availed by them though they tried to confine the liability only to the basic duty component under the plea that the CV duty liability would get neutralised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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