9911796707
TMI Blog2003 (6) TMI 444X X X X Extracts X X X X X X X X Extracts X X X X ..... Dy. Commissioner, Customs (EPCG), Custom House, Chennai. The application was admitted by this Bench vide Admission Order No. 2/2003 (Cus) dated 4-2-2003 wherein, the details of the case have also been spelt out. However, in a nutshell, it may be stated that the applicant obtained an EPCG licence bearing No. 04500281 dated 1-9-97 which permitted import of capital goods, namely, ARCH PRESS with different cavities, Speed Tester, and Ovens for the locking of the wheels with Electric Board with electronic programmer. As per the said licence, the applicant was under obligation to export cutting and grinding wheels worth US$ 18,70,876.14 within a period of 5 years from the date of issue of the licence. The applicant imported the capital goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the written synopsis filed by the Advocate and the records, the following order is passed. 4. The Bench finds that the applicant has accepted their failure to achieve the export obligation contingent upon import of the capital goods on the strength of the EPCG licence in question. The entire duty foregone has also been admitted, which has also been realized by the Revenue by encashment of the BG on 1-8-2002 as is seen from the report dated 6-9-2002 from file F. No. C1/MISC. 10/2002-legal (Sea) of the Dy. Commissioner of Customs. Even though the applicant has claimed to have exported the finished goods and achieved 2.6% of the export obligation, they have not pressed this point nor sought proportionate reduction in duty dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Revenue submitted that the argument of the Advocate for claiming remission of interest on the additional Customs duty is hypothetical. He, therefore, insisted on levy of full interest. On the question of reduction of interest rate from 24% to 15% with retrospective effect as per Finance Act, 2003, he requested two days' time to file written submissions but till date no such report has been received from the Respondent. 6. The argument of the Advocate that there is no loss of revenue to the Government as they could have availed the Cenvat credit if they had paid additional Customs duty is no doubt attractive, but, the fact remains that the applicant had not paid the additional Customs duty at the appropriate time i.e., at the time of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (7) of Sec. 127C of the Customs Act, 1962 : (i) The duty liability is fixed at Rs. 48,59,967/-. The same having been recovered by encashment of BG, no further amount is due from the applicant towards duty. (ii) The applicant shall pay simple interest @ 10% p.a. for the delayed payment of duty from the date the duty was due, till it was paid. The Revenue shall calculate the interest and inform the applicant within 3 weeks of receipt of this order, and the applicant shall pay the interest within 3 weeks of receipt of the communication from Revenue. Compliance shall be reported to this Bench also. Immunity in excess of 10% is granted. (iii) Immunity from penalty and prosecution under the provisions of the Customs Act, 1962 is also granted. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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