TMI Blog2024 (12) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... with such regularisation in terms of Public Notice No.22(RE-2013)/2009-2014 of the Government of India, Foreign Trade Policy in Ministry of Commerce. It is clear from a reading of the Public Notice No.22(RE-2013)/2009-2014, all the pending cases of the default in meeting Export Obligation (EO) can be regularised by an authorisation holder on payment of applicable customs duty, corresponding to the shortfall in export obligation, along with interest on such customs duty. The interest component to be so paid was not to exceed the amount of customs duty payable for this default. The above Public Notice which is basis for amendment to Notification No.49/2000-Cus.dated 27.04.2000 vide Sl.No.22 and Notification No.46/2013-Cus dated 26.09.2013. Thus, it is clear that Public Notice No.22(RE-213)/2009-2014 was not in the context of bonafide default by the importer. The intention of the Commerce Ministry under Public Notice No.22 (RE-2013)/2009-2014, has been reflected in the form of amendment through several notifications of the customs dealing with various scheme announced under the Foreign Trade Policy which were implemented under Notifications issued under Section 25(1) of the Customs A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the Settlement Commission informed the petitioner that the order passed by the Settlement Commissioner under Section 127(J) of the Customs Act, 1962 is conclusive and cannot be re-opened by the Settlement Commission. Whether such orders are conclusive of inconclusive or final or whether they can be recalled can be decided only by the Settlement Commission. 5. Since no orders have been passed by the Settlement Commission in response to the applications filed by the petitioner to recall the impugned order, I am of the view that the present writ petition can be disposed with a direction to the Settlement Commission to pass appropriate order in the application filed by the petitioner on 25.08.2015 to recall the impugned order. It is made clear that the Settlement Commission shall pass appropriate orders on merits without getting influenced with the observation contained herein. 6. The present writ petition is disposed with the above observations. No costs. Consequently, connected miscellaneous petitions are closed. 2. Pursuant to the directions of this Court dated 02.01.2020, the Settlement Commission has passed impugned order in F.No.S.A.Cus-17 54-58/2013-SC dated 30.12.2020. Ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the SIIB investigation vide letter dated 15.03.2012 addressed to the Deputy Commissioner of Customs, SIIB, Custom House, Chennai, inter-alia, expressed their decision to exit out of the EPCG obligation and to regularise their default of non- fulfillment of export obligations. Thus, to conclude, it is seen that while they had all along approached DGFT/MOC for inclusion of M/s BNT for third party exports and on 7.10.2011 they had approached EPCG Committee, New Delhi for condonation and extension of EPCG they never kept the Customs even informed of the developments before the SIIB Wing of the Custom House visited the premises on 30.11.2011 when diversions/sale of the Capital Goods in contravention of notifications were noticed. The Bench is of the considered view that the above conduct of the applicant does not establish that their default was bonafide. 7.11Further Notification No.46/2013 at Sl.No.22 inserted the following:- In the said notification, after the paragraph 4 and before the Table, the following paragraph shall be inserted, namely:- 5. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e open right now before the Settlement Commission is the quantification of interest. Taking into consideration the Order of the Hon'ble High Court, the Settlement Commission is inclined to quantify the interest payable as Rs. 1,12,98,488/-. The Applicant has paid an amount of Rs. 70,60,790/- as confirmed by the Revenue. The Applicant is directed to pay the balance amount of Rs. 42,37,698/- towards interest liability. In all other aspects, viz., fine and penalty (on the Applicant and Co- Applicants) the earlier Final Order No. 4/2014-Cus dated 28.01.2014 of the Settlement Commission, Chennai stands. stands. ORDER 8.1 In the light of the above, the Bench settles the case under the Customs Act, 1962 on the following terms and conditions: 1. INTEREST: The interest liability in this case is settled at Rs. 1,12,98,488/-(Rupees One Crore twelve lakhs ninety eight thousand four hundred and eighty eight only). The Applicant has paid an amount of Rs. 70,60,790/-(Rupees seventy lakhs sixty thousand seven hundred and ninety only). The Applicant is directed to pay the balance amount of Rs. 42,37,698/-(Rupees forty two lakhs thirty seven thousand six hundred and ninety eight only) within 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport of the capital goods under EPCG and later a further sum of Rs. 70,60,790/ - towards interest. The net balance payable was thus reduced Rs. 42,37,698/- ( Rs. 1,12,98,488/- _ Rs. 70,60,790/-) from Rs. 1,12,98,488/- vide order dated 03.09.2013. 8. The specific case of the petitioner is that Notification No.49/2000-Cus dated 27.04.2000 under which the Bills of Entries were filed on strength of the EPCG Licence issued by the Regional Authority, namely, the Assistant Director General of Foreign Trade was amended vide Sl.No.22 to Notification No.46-2013-Cus. Dated 26.09.2013. As per the amendment, in case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No.22 (RE-2013)/2009-2014 dated the 12th August, 2013 . Sl.No.22 , reads as under :- Sl.No. Notification No.and date Amendments 22 49./2000-Customs, dated the 27th April, 2000 (Vide number G.S.R.365(E), dated the 27th April,2000) In the said notification, after the opening paragraph and before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under :- 4. The importer shall, if he fails to discharge a minimum of 25% of the export obligation prescribed for any particular block of two years for two consecutive block, be liable to pay forthwith the whole of the duties of customs leviable on the goods imported but for the exemption contained in this notification together with interest at the rate of 24% per annum from the date of clearance of the goods . 15. The said Notification was amended along with several other notifications by Notification No.46/2013-Cus dated 26.09.2013. The amendment at Sl.No.22 Notification No.49/2000-Cus. dated 27.04.2000 deals with only default in Export Obligation, when the duty on the goods is paid, to regularise the default amount of interest paid by the importer and it shall not exceed the amount of duty with such regularisation in terms of Public Notice No.22(RE-2013)/2009-2014 of the Government of India, Foreign Trade Policy in Ministry of Commerce. The said Public Notice No.22 22(RE-2013)/2009-2014 reads as under :- All pending cases of the default in meeting Export Obligation (EO) cane be regularised by the authorisation holder on payment of applicable customs duty, corresponding to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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