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TMI Blog2008 (12) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... n not justified - C/118-119/2006 - C/3-4/2009(PB), - Dated:- 16-12-2008 - S/Shri M. Veeraiyan, Member (T) and P.K. Das, Member (J) Shri Krishan Kant, Advocate, for the Appellant. Shri L.B. Yadav, DR, for the Respondent. [Order per : M. Veeraiyan, Member (T) (for the Bench)].- These appeals against the order of the Commissioner No. 9/2006, dated 31-1-2006. 2. Heard both sides. 3. Relevant facts in brief are as follows:- (a) The appellant-company obtained EPCG licence in September, 2002 and imported two numbers of BMW cars at concessional rate of duty of 5% basic Customs duty. The EPCG licence was issued for the 'travel agency'. They were required to fulfill the export obligation of about Rs. 2.06 crores. (b) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) DGFT authorities have accepted the contention and redeemed the EPCG licence in March, 2004 itself. There has been no proceedings from the DGFT authorities for any violation of EXIM Policy or conditions of EPCG licence. The contention of the department that the value of tax and commission received for hosts of associated services are not to be included as fulfilment of the export obligation attributable to the imported cars under EPCG licence is not acceptable as the views of the DGFT authorities are totally contrary to the claim of the Department. (c) As per the EXIM policy (para 5.4 of EXIM policy), earnings on export of services from the date of issue of licence can be taken into account for the purposes of fulfilling export obligat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing decisions:- (1) M/s. Interglobe Enterprises v. UOI [2006 (203) E.L.T. 202 (H.C. Delhi) (2) CCE, Trichy v. Rukmani Packwell Traders [2004 (165) E.L.T. 481 (S.C.)] 5.3 He also submitted that the decision in the case of Som Dutt Builders Ltd. relates to Notification No. 49/2000-Cus., dated 27-4-2000 whereas present case involves the Notification No. 44/2000, dated 19-04-2000. 6.1 We have carefully considered the submissions from both the sides. Relevant portion of the exemption notification governing the import under EPCG is reproduced below:- "In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount as may be fixed by the Licensing Authority in terms of clause (i) of Paragraph 5.4 of the Export and Import Policy, 2002-2007, within a period of eight years from the date of issue of licence, in the following proportions, namely:- Provided that where the CIF value of licence is not less than Rs. 100 crores or where the license is issued to Units in the agri export zones as may be notified by the Director General of Foreign Trade in the Ministry of Commerce and Industry, the export obligation shall be fulfilled within a period of 12 years from the date of issue of licence in the following proportions, namely- Provided further that where a sick unit notified by the Board for Industrial and Financial Reconstruction (BIF) is subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.3 We find that the Customs authorities have taken up the matter with the DGFT expressing their views that there is violation of EXIM Policy provisions and it appears that the said view has not been accepted by them. According to the appellant, not only the DGFT had not accepted the view of the Customs Department but they have also redeemed the EPCG licence after certifying that they have fulfilled the export obligation as prescribed. 6.4 We agree with the contention of the learned DR that the Customs authorities are empowered to look into the compliance of the conditions of the notification independently. However we, in the present case, find that the notification has a link to provisions of the EXIM policy and the understanding o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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