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TMI Blog2010 (2) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... charge export obligation in relation to the imported goods. They had 5 years to achieve this in relation to the capital goods, from the date of installation. The capital goods imported by them were worth over Rs. 120 crores and raw materials worth over Rs. 5 crores. These imports were made in 1997-98 and the provisions of the EXIM Policy 1997-2002 were applicable. During 1999-2001, the EOU could export their finished goods worth Rs. 7.45 crores including deemed exports. They could not make any further exports. The unit was shut down in September, 2000. Later on, on the ground of breach of conditions of Notification No. 53/97, whereunder the goods were imported duty-free, the customs authorities issued a show-cause notice to the party and tw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f raw material worth Rs. 5.84 crores. It has been argued that, as the department has not alleged that any raw material was diverted and as it is not their case that any unutilised raw material was found in the factory, the demand of duty on the raw material is not sustainable. It has been claimed that the entire raw material was utilised in the manufacture of the finished goods and such goods were exported or cleared to DTA. We find from the records that, in their reply to show cause notice, the EOU contended that there was no stock of raw material left unutilised. The impugned order does not seem to contain any rebuttal of this claim of the EOU. In this scenario, we are inclined to grant waiver of pre-deposit and stay of recovery in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er imposed penalty of Rs. 6 crores on the EOU and penalties of Rs. 5 crores each on the two Directors. Prima facie, the quanta of penalties are harsh. Learned counsel has pleaded financial hardships on the strength of the annual report of the company. It is submitted that the company is presently before the BIFR. However, the BIFR proceedings are yet to be concluded. Though it is submitted that a receiver has been appointed to takeover the assets of the Company, no inventory of goods nor any statement of assets and liabilities drawn by any receiver was brought on record. 4. In the above scenario, we are not in a position to grant full waiver of pre-deposit of the penalty imposed on the main appellant, EOU. We direct them to pre-deposit an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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