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TMI Blog2012 (9) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the machinery in its factory and produced such installation certificate within 6 months from the date of completion of import. 2. The Revenue made out a case that the said machinery was not installed in the factory. There was failure on the part of the respondent to discharge the export obligation. As per show cause notice, the obligation fulfilled by the respondent was only to the extent indicated below :- Licencing year % Export Obligation Export obligation to be fulfilled in British Pounds Export obligation to be fulfilled in Rs. Export obligation fulfilled in British Pounds Export Obligation fulfilled in Rs. 18-3-96-17-3-97 Nil Nil Nil 171412.88 10,12,559 18-3-97-17-3-98 10% 58156 31,61,360 37586.24 21,81,508 18-3-98- 17-3-99 20% 1163312 63,22,720 12536.60 9,62,575 18-3-99-17-3-00 30% 174468 94,84,080 Nil Nil 18-3-00-17-3-01 40% 232624 3,16,13,600 655335.72 41,56,642 Total 100% 581560 3,16,13,600 67535.72 41,56,642 3. Since there was failure to fulfill the export obligation, the respondent was issued with a show cause notice dated 7-3-2003 demanding customs duty to the extent of Rs. 15,03,941/and also proposing confiscat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ult and the said proviso does not prescribe any time limit. Further respondent had executed a bond for proper discharge of export obligation failing which the differential duty was to be paid as per terms of the bond. Therefore, it is the contention of Revenue that the finding of Commissioner (Appeals) that the demand is time barred is not correct. 5. Heard arguments on both sides and perused records. 6. We have studied the Show Cause Notice to find out whether the charge against the Respondent was that the company did not have a factory and they sold of the machinery without using it for manufacture of goods for export or whether they used the machinery for the intended purpose for some time but did not discharge the export obligation completely. To understand the ambivalent manner in which these issues are stated in the SCN, two of the paras of the SCN are re-produced below. "On the basis of information that the party has not discharged the export obligation as per conditions of the Notification No. 110/95-Cus., dated 5-6-95, Exim Policy and EPCG licence, the investigations were undertaken by the Anti-smuggling Branch of Customs Commissionerate, Amritsar. It was foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further stated that they are ready to pay the duty along with interest. As per letter F. No. EPCG-59/AM 96/Lic/LDH/156, dated 2-9-99 of Assistant Director General of Foreign Trade, Ludhiana addressed to the Assistant Commissioner of Customs, CFS Ludhiana, the party fulfilled 30.95% export obligation upto to 17-3-99. In view of the said letter, the party is required to pay in terms of para 4 of the Notification No. 110/95-Cus., dated 5-6-95 the customs duty along with interest @ 24% corresponding to unfulfilled portion of the export obligation. The party vide his letter dated 30-11-2000 forwarded a copy of TR-6 challan for Rs. 5,80,000/- along with chart of calculation of duty and interest to Deputy Commissioner, CFS Ludhiana. The party vide his letter dated 15-2-2001 supplied photocopies of shilling bills, BRCs and statement of export. Subsequently, in compliance to Assistant Commissioner, CFS, Ludhiana's letter C No. VIII/-Cus./PSWC/Lud/EPCG/13/95-96/324-25, dated 8-5-2001 the party vide his letter dated 23-5-2001 submitted a copy of TR- 6 challan dated 21-5-2001 for Rs. 10,856/-. Summons were issued to Shri Gurpartap Singh on 21-2-02 for appearance on 25-2-02 but vide his lette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harge of export obligation as the same have not been manufactured with the use of machinery imported under the EPCG scheme vide EPCG licence No. 2081519, dated 18-3-96. The details of export obligation as per condition 3 of Notification No. 110/95-Cus., dated 5-6-95 and actual export obligation fulfilled by the party is as under - Licencing year % Export Obligation Export obligation to be fulfilled in British Pounds Export obligation to be fulfilled in R. Export obligation fulfilled in British Pounds Export Obligation fulfilled in Rs. 18-3-96-17-3-97 Nil Nil Nil 171412.88 10,12,559 18-3-97-17-3-98 10% 58156 31,61,360 37586.24 21,81,508 18-3-98- 17-3-99 20% 1163312 63,22,720 12536.60 9,62,575 18-3-99-17-3-00 30% 174468 94,84,080 Nil Nil 18-3-00-17-3-01 40% 232624 3,16,13,600 655335.72 41,56,642 Total 100% 581560 3,16,13,600 67535.72 41,56,642 7. There is no allegation that the factory did not exist at the time of import of the goods. Nor is there a clear charge that the Respondent sold the machinery without using it for the intended purpose. Stating that the occupant of plot No. C-144, Phase-VII, Mohali during 1999 did not know a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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