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TMI Blog2017 (9) TMI 1333X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of sub-standard materials, the quantum of penalty should be reduced. Appeal allowed - decided partly in favor of appellant. - C/76042/2015, 2)-4)C/75128, 75818 & 75819/2016 - FO/75664-667/2017 - Dated:- 22-3-2017 - Shri P.K. Choudhary, Member (Judicial) Shri D. Sahu, Advocate for the Appellant (s) Shri K.C. Jena, Addl. Comm.(AR) for the Respondent (s) ORDER Per: Shri P.K. Choudhary 1. The appellants are engaged in manufacturing diagnostic laboratories. The appellant imported complete Turnkey Laboratory equipments for Hematology Reagent manufacturing plant for erection at EPIP under EPCG Scheme and cleared the goods vide two Bills of Entry availing concessional rate of Customs Duty and furnished Bank Gua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Show cause notices were issued and after due process of law vide Order-in-Original the demand of duty was confirmed for non-fulfillment of export obligation and penalties were also imposed under Section 170 of the Customs Act, 1962. On appeal the First Appellate Authority upheld the adjudication order and rejected the appeals. Hence, the present appeals. 2. Ld. Advocate appearing on behalf of the appellant company submitted that the appellants were unable to comply with the conditions of the EPCG license, since the quality of the finished goods to be exported could not be achieved of the international standard and accordingly the same were not fit to be exported. Appellants are trying their best to succeed in the project and have not dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure, shall be liable to penalty. In the present case, I find that the appellant failed to comply with the provisions of the Act by way of non-fulfillment of the obligations of the Act, the imposition of penalty under Section 117 is warranted. However, as the appellant failed to fulfill the export obligations due to the manufacture of sub-standard materials, the quantum of penalty should be reduced. 6. In view of the above discussion, the appeals filed by the appellant are thus partly allowed to the extent that the penalty imposed in Appeal No. 75128 and 75819/2016 is to be reduced to ₹ 3,000/- each and in Appeal No.76042/2015 75818/2016 is to be reduced to ₹ 5,000/- each. 7. Accordingly, Appeals are disposed of in the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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