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TMI Blog2004 (12) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... rade and the notice dated 6-8-01, issued by the Deputy Commissioner of Customs, Air Cargo Complex, Hyderabad. Along with M/s. Astra Microwave Products Ltd, the co-applicants Shri B. Malla Reddy, Managing Director, Smt. C. Prameelamma, Director Shri P.A. Chitrakar, Director of the applicant firm (mentioned above at Sr. Nos. 2, 3 and 4) have also filed applications for settlement of the proceedings initiated against them. These applications were admitted for settlement vide Order No. 48/2004-Cus., dated 29-7-2004. 2. The applicant company is a manufacturer of microwave components and imported Capital Goods for the manufacture and export of microwave components against EPCG Licence with an export obligation. The Capital Goods were imported u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company as well as the co-applicants, while Shri R. Paramasivam, Dy. Director General of Foreign Trade, DGFT, Chennai represented the DGFT office. The Advocate pleaded that : (i) The said Customs Notification No. 160/92, dated 20-4-1992, did not provide for demand of interest and, therefore, interest is not payable by them. (ii) The applicant is liable to pay interest at the rate of 15% as per the Bond executed by them under Foreign Trade Act. The Bank Guarantee executed by the applicant company covers the duty liability demanded by the DGFT. Since the non-fulfilment of the export obligation is unintentional, the applicant has prayed for waiver of full interest amount. (iii) The applicant is a manufacturer importer and is eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant could fulfil export obligation to the extent of 64% only by 31-7-2001, reportedly due to paucity of export orders and could not fulfil the export obligation even during the extended period. The export obligation reportedly could not be fulfilled due to reasons beyond the control of the applicants. The applicant has admitted the duty liability in full, which has also been recovered by encashment of Bank Guarantee executed. The total amount of differential duty recovered on the unfulfilled export obligation is Rs. 9,46,180/-, consisting of Basic Customs Duty of Rs. 4,17,055/- and CVD of Rs. 5,29,125/-. The Bench observes that there is no contravention of the notification, with any intention to evade duty as the import is against a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty, including CVD, was not paid at the appropriate time. However, the Bench directs, Revenue to consider grant of certificate of payment of duty as requested by the applicant after the settled amount is paid. 4.3 In view of the immunities being given to the main applicant company, the other co-applicants also merit immunities sought for. 5. Taking into account the above facts, the application is settled under Section 127C(7) of the Customs Act, 1962 on the following terms and conditions : (i) The duty liability is settled at Rs. 9,46,180/- which has already been recovered out of Bank Guarantee executed by the main applicant. Hence no further amount requires to be paid in this case. (ii) The main applicant company is grante ..... X X X X Extracts X X X X X X X X Extracts X X X X
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