9911796707
TMI Blog2003 (1) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... g on them a penalty of Rs. 1,27,484/- under Section 114A of the Act. 2. The facts of the case are as under :- (a) The appellants had applied for and obtained eight Quantity-based Advance Licences in the DEEC scheme in which they were entitled to import raw materials free of duty under Notification No. 204/92-CE for manufacture of finished goods and were liable to export such finished goods. The licences prescribed the quantitative limits for the imports. The DEEC scheme obligated the appellants to discharge their export obligation within the period stipulated by the DGFT. In respect of raw materials imported by them under 4 of the 8 licences, the appellants fulfilled their export obligation. A fifth licence was surrendered by them. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory and, on scrutiny of records and verification of stock, found that export obligation had not been discharged, partly or fully, in respect of raw materials imported under the 3 advance licences. A period of 12 days beyond the last date for discharge of export obligation was too short for any reasonable authority to allege mens rea against the importer, submits the Consultant. It is further submitted that, before the show cause notice was issued, an amount of Rs. 50,000/- was paid voluntarily towards demand of duty on the raw materials. The remaining amount of Rs. 77,484/- has come to the credit of the department by way of deposits made by the party under Section 129E of the Act during the pendency of the instant appeal. Appellants ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligation. That they had time up to 31-12-97 for discharge of the obligation is also not in dispute. Again, there is no contest of the appellants submission that they had been pleading with the DGFT for extension of time for discharge of export obligation in respect of the above raw materials. Officers of Customs visited the factory of the appellants on 12-1-98 and conducted scrutiny of records and verification of stock. The party, thereupon, conceded their failure to discharge export obligation in respect of three advance licences and, admittedly, remitted an amount of Rs. 50,000/- towards duty on the raw materials covered by those licences. The adjudicating authority has appropriated that remittance towards the demand of duty of Rs. 1,27, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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