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TMI Blog2024 (3) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... r installation and use of machinery which is a mandatory requirement under the EPCG Scheme without verifying the installation of machine in the premises of the factory of the importer. The purpose of such certificate issued by a Chartered Engineer is not only to facilitate installation of machinery as imported under the EPCG Scheme but the installed machine also acts as a precursor for the importer to avail benefit of EPCG exemption therefore to fulfill purpose of installation it is imperative that the presence of machinery on the premises be verified. To issue such Certificate without verification of the fact that machines are installed in the factory, the appellant has facilitated to evade custom duty by the importer which under the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines are installed or otherwise. 02. Shri Devashish K. Trivedi, Learned Counsel appearing on behalf of the Appellant submits that the Appellant has issued the Chartered Engineer Certificate on a bonafide belief that the applications so made were in furtherance of machines being installed in the factory. He submits that the Appellant placed reliance on the documents submitted to him and believing that what is told to him to be true and correct issued the said Certificate without any knowledge whether the machines were diverted or otherwise as the purpose for which the certificate is issued only pertains to installation and use and not in furtherance of business transaction under the Customs Act, therefore it cannot be presumed by the Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has facilitated to evade custom duty by the importer which under the application of law is construed to be a serious offence on the part of the Appellant. Accordingly, in our considered view the Appellant is liable for penalty under Section 112(a) and Section 114 AA. However, considering the fact that the Appellant under bonafide belief relied on the documents to issue certificate due to which his registration was cancelled and his business suffered for three years, we are of the view that the Appellant deserves leniency as regards the quantum of penalty imposed. 05. Accordingly, we reduce the penalty under section 112(a) from Rs.1,00,000/- to Rs. 50,000/- and that under section 114AA from Rs.10,000/- to Rs. 5,000/-. The impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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