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TMI Blog2001 (10) TMI 1099X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sagar, 20, Nepeansea Road, Mumbai-400037. A SCN dated 10-11-2000 was issued to the applicant by the office of the Commissioner of Customs,; Air Cargo, New Custom House, New Delhi seating that the applicant have failed to adhere to discharge at least 25% of the export obligation fixed for 3 consecutive years and are found liable to remit the full duty forgone as per condition 5 to notification No. 110/95. 2. The brief facts of the case are that in January, 1996, the, applicant applied for and obtained an Export Promotion Capital Goods (EPCG) Licence from the office of Director General of Foreign Trade, New Delhi. This licence required the applicant to export products worth US $ 354676 i.e. four times the c.i.f. value of the capital goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettlement of the case in respect of the following : (i) To accept the admitted additional duty liability of Rs. 14,25,116/- (including the amount already paid) and discharge the show cause notice dated 10-11-2000. (ii) To waive the interest @ 24% per annum proposed to be charged in the SCN. (iii) To waive the imposition of penalty on the applicant for the alleged non-fulfilment of export obligation. (iv) To grant immunity from prosecution to the fulfilment of export obligation against the subject licence. 5. The applicant was heard on 10-7-2001 and 10th August, 2001 through his advocate Shri B. Lakshmi Narayanan who stated that there was a calculation error in the initial application and therefore they filed an amended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... October, 2001. The advocate appearing on behalf of the applicant submitted that they had imported colour scanner in order to scan picture which could then be used for printing; that this equipment was a pre-press product; that on account of change in technology, pre-press staged has obsolete. As a result of this, internationally the demand for their products has fallen resulting in non-fulfilment of their export obligation. It was rightly conceded by the learned Advocate that the applicant did not make a proper evaluation, of technology before importing the equipment The advocate further emphasized the applicant did not have any fraudulent intention in claiming exemption from duty under EPCG Scheme and that this was a case of error in judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... desired purpose. 10. We have carefully considered the submission, both written and oral made on behalf of both the parties. The applicant in his affidavit has affirmed that in 1997-98 there was a revolution in the pre-press industry wherein there was a shift from high-end pre-press equipment (such as the 342L scanner) to desktop equipment. This was not anticipated by the applicant. As the desktop equipment was much cheaper it greatly reduced the prices charged by pre-press houses world over. As a result, it was impossible to offer cheaper prices for pre-press goods in the international market. Further, with the evolution of cheap desktop pre-press equipment, the pre-press industry was greatly reginalised. Several local pre-press houses e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Additional Bench of this Commission has considered settlement of cases involving imports under EPCG Scheme in the case of M/s. Bell Granito Ceramic Ltd. [2001 (133) E.L.T. 495 (Sett. Com.)] in their interim order No. 4A/2001-CUS and have explained the rationale of settling such cases. We are in full agreement with the views of the Additional Bench. Revenue s reliance on para 52 of the order in the case of TASC Pharmaceuticals Ltd. is also of no avail as in that case the Additional Bench of the Commission at Mumbai granted full immunity from prosecution and penal liability and part immunity from interest liability restricting the interest to 10% per annum. We are of the opinion that the applicant has satisfied the requirements of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oof of payment thereof within 30 days of the receipt of this order. We have restricted the interest liability only to the balance amount as we find that the applicant had furnished a Bank Guarantee which has been encashed by Revenue and on their inability to fulfil export obligation during the first block of 2 years, the importer have discharged the proportionate duty liability along with the interest chargeable at full rate on that liability. We have also taken into consideration the conduct and the unitended failure of the applicant in discharging his obligation under the notification. 12. The settlement arrived at hereinabove shall be void if it is subsequently found by the Settlement Commission that it has been obtained by fraud or mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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