9911796707
TMI Blog2016 (12) TMI 1501X X X X Extracts X X X X X X X X Extracts X X X X ..... e time of de-bonding, duty can be demanded only on the depreciated value - Further, the non-fulfilment of export obligation is on account of the business conditions prevailing at that time and not on account of any mala fide act. In such circumstances, imposition of penalties is not justified - redemption fine and penalties set aside. The duties of customs are payable at the time of importation of the goods. Admittedly, the capital goods were imported by the appellant on 28.12.2000 and the same has been in the custody of the appellant; therefore, the appellant is liable to pay duty chargeable as on 20.12.2000. Consequently, the plea of the appellant that depreciated value of the machine is to be taken as basis for the duty is not accepta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he machine went to liquidation and could not fulfil its obligation to install and operate the said machine in India. Therefore, it was beyond the control of the appellant to install the machine in their factory premises. Consequently, they could not do any activity. As appellant was bonafide importer, therefore, the machine cannot be confiscated and no redemption fine and penalty are imposable in the light of the Tribunal s decision in the case of Taurus Novelties Ltd. vs. CC, Bangalore 2004 (173) 100 (Tri. Bang.) and Premier Granites Ltd. vs. CC CE- 2007 (210) ELT 200 (Tri.) He further submits that there is no basis or any reason or justification, and as such Revenue has seriously erred in confirming the duty demand without jurisdicti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edemption fine and penalty on the appellant are not imposable. This Tribunal in the said case observed as under: 3. On a careful consideration of the submissions, we notice that the appellants had imported capital goods under concessional rate of duty under EPCG Notification No. 110/95, dated 5-6-1995. But, they could not set up the industry to fulfil the export obligation due to total collapse of Korean economy and hence could not procure the order for manufacture and export of ceramic goods. The value of Korean company fell drastically and affected the appellants project. As they could not get the support from the Korean collaboration for buy back of production and due to stiff competition from Chinese competitors, the factory could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearly applies to the facts and circumstances of this case. Respectfully following the same, the impugned order, confiscating the machinery and imposing redemption fine and penalty on the Company and the Directors including the levy of interest, is set aside by allowing the appeal. Further, we find that in the Premier Granites Ltd. (supra) again this Tribunal has observed as under: 6. We have gone through the records of the case carefully. In the present case, duty foregone has been demanded by the Adjudicating Authority on the ground that the appellants had not fulfilled the export obligations completely in terms of both the Customs and Central Excise Notifications. It is not the case of the Revenue that the appellants import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on account of partial fulfilment of export obligation in the light of our decision in Natural Stone Exports Ltd. and also the benefit of depreciation. The appeal is allowed by way of remand. The original authority shall pass a speaking order within period four months, after giving an opportunity of hearing to the appellant. The appellants shall furnish all the documentary evidences in support of their claim of partial fulfilment of export obligations. Therefore, we hold that the redemption fine and penalty are imposable. 7. Ld. Counsel for the appellant contended that the duty is to be demanded on the depreciated value of the machine, we are not in agreement with the contention of the appellant as in this case the machine has been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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