9911796707
TMI Blog2003 (9) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... -Cus., 1-4-97. The capital goods have been ordered to be confiscated. However, they have been directed to be released on payment of redemption fine of Rs. 4.50 crores. There is personal penalty of like amount of duty under Section 114A of the Customs Act, 1962. 2. The short facts of the case are that appellants, who are a private terminal operator at Tuticorin, have obtained EPCG licence for export of service under port handing services export category. In terms of the licence and the concerned notification, they are required to earn money only in freely convertible foreign currency for services rendered through utilisation of such capital goods. The period for expiry of the licence is 5 years. However, even before the expiry of the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this connection, we advise that any such payment which would have been otherwise received in foreign exchange but paid in Indian rupees out of the amount remittable to overseas principal, thereby reducing outgo of foreign exchange can be considered as (i) deemed to be received in foreign exchange (ii) deemed to be earned in foreign exchange. (e) It is submitted that the time under the EPCG licence for completion of the export obligation is five years, which is not yet expired and as such, the proceedings initiated by the Customs is premature and not sustainable. (f) Ld. Sr. Counsel pointed out that even in terms of the rulings given by the Tariff Authority for Major Imports and RBI, appellants have fulfilled the term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the appellants. 6. Ld. SDR points out that RBI clarification pertains to the period 2002-2007 while the present imports are earlier to this period hence the notification is applicable. 7. We have carefully considered the submissions and notice that there are three points which have been urged which require consideration for grant of total waiver : - (i) that proceedings have been initiated before expiry of the terms of EPCG licence; (ii) that they have already executed bank guarantee to the tune of Rs. 21 crores as security which is still alive; (iii) that Tariff Authority for Major Imports and RBI have clarified that they can earn in freely convertible foreign currency which has been done. They have als ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
