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TMI Blog2014 (7) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... Foreign Trade Policy 2004-09 and was subject to the conditions laid down in the said chapter. 2. Condition No.2 stipulated that export obligation shall be fulfilled by the user of the imported capital goods. 3. Condition No.6 stipulated that the import of capital goods under the subject licence should be subject to 'Actual User Condition'. 4. Condition No.9 stipulated that the capital goods imported was to be installed at M/s, NTSPL,F-53,Bhagat Singh Market, New Delhi. 5. Condition No.10 stipulated that the licence would be operative as per the provisions of Foreign Trade policy and Hand Book of Procedures 2004-09 or any other law/provisions for the time being in force. 3.1 Investigation to the import made on 24.9.2008 noticed that the Mercedes car imported by the appellant company was not used for tour and travels to earn foreign exchange. Therefore that was seized on that date in terms of panchnama on the ground that condition of import under EPCG scheme was violated. Statement recorded from Sri Rajendra Prasad Verma, driver showed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi. On the basis of the above said application, M/s. NTSPL was granted the license No. 0530137584/11/00 dated 10.12.2004 under EPCG scheme mentioned as above. The import was subject to Actual User condition and the conditions, interalia, stated that the export obligation shall be fulfilled by the use of the imported car and that shall be installed at f-53, Bhagat Singh Market, New Delhi. M/s. NTSPL had imported the said vehicle claiming duty exemptions under Notification No. 97/2004-Customs dated 17.09.2004 and the details of the Customs duty saved were also given in item list attached to the licence. (ii) The imported Mercedes Benz SL 500 car Regn. No. DL ICK 2525 was not installed at F-53, Bhagat Singh Market, New Delhi, as stipulated in the EPCG licence under which it was imported. The physical possession of the Mercedes Benz SL 500 car was with Shri Sham Nijhawan, MD of M/s. NTSPL. (iii). The installation certificate in respect of the imported Mercedes-Benz SL500 car was not submitted to the port of clearance i.e. ICD Tughlakbad, New Delhi within stipulated time. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the investigation as detailed above it appeared that though M/s NTSPL imported the vehicles under the EPCG Scheme, it never had complied with the conditions of the license except using the car exclusively for personal and private purpose of its Managing Director, Sh. Sham Nijhawan. 9. It appeared to investigation that in view of Para 14, 14(i) to 14(6) of the SCN dated 2.2.09 M/s NTSPL have contravened the law relating to import in the following manner: (a) The provision of section 11 of the FTDR Act, 1992 and Rule 14 (1) of the FTRR, 1993 were violated deliberately making false and incorrect declarations before the DGFT authorities and EPCG licences obtained fraudulently to import the vehicle under the EPCG scheme in contravention of prohibitions imposed under Rule 14(2) of the FTRR, 1993, with an intention to evade the payment of customs duty payable on the car. (b) Condition No. 2 of the EPCG licence and Para 5.4 of the Foreign Trade Policy was violated by not fulfilling the export obligation by actually using the vehi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s NTSPL under Section 112 (a) and /or 114 of the Customs Act, 1962, (d) Penalty was also proposed to be imposed on Shri Sham Nijhawan, Managing Director, M/s. NTSPL, under Section 112(b) of the Customs Act, 1962 for the omission and commission in relation the import of the above vehicles in violation of the conditions of EPCG Scheme. 11. Ld. Counsel for the appellant in the course of hearing did not dispute that import of the car and registration thereof was meant for earning foreign exchange from exporting service. That was verified and found to be private car. He submitted that the transport authority did not register the car as taxi. Considering such difficulty government issued a circular No.2/(RE-2012)/2009-14 dated 19.07.2012 and in terms of the said circular, the vehicle was not required to be registered as Tourist Vehicles till 19.7.2012. Appellant has fulfilled the export obligation for which adjudication is unsustainable. Export obligation was to be discharged within eight years of import. When the import was made on 1.6.2005 and investigation was made on 24.9.2008 that is premature stage to make allegation when la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Rule 14(2) of the FTRR, 1993. There was violation of law with an intention to evade the payment of customs duty at the time of import. (b) Condition No. 2 of the EPCG licence and Para 5.4 of the Foreign Trade Policy was not complied with in absence of export obligation discharged making use of the vehicle. (c) Condition No.6 of the EPCG licence was violated allowing possession and control of vehicle and permitting personal use thereof by Shri Sham Niihawan. (d) Condition No. 9 of the EPCG licence was violated without installing the vehicle at the declared place. (e) Conditions of para 5.15 of the Hand Book of Procedures Vol. 1 (Foreign Trade Policy 2004-09) was violated for non-maintenance of records relating to the use of the imported car. (f) Provisions of Notification No. 97/2004 dated 17.09.2004 was violated without furnishing the installation certificate, and not using the imported vehicles fo ..... 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