9911796707
TMI Blog2000 (12) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... notified in the Export Import Policy. The exemption from duty is 75%, if the importer undertakes an export obligation equal to three times the CIF value of the capital goods over a period of four years, and 85% if the export obligation is four times the CIF value spread over five years. The importer undertook to export three times the CIF value of the goods within four years and therefore availed of the exemption to the extent of 75% of the duty. The importer also executed a bond with the licensing authority under paragraph 45 of the Export Import Policy and made a declaration before the Assistant Commissioner of Customs binding himself to pay amount equal to duty leviable to the goods if the export obligation was not complied with. 2.The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licences, which includes the licence obtained by the appellant, were deemed to be eligible for extension of export obligation up to 31-3-2001, provided the licence holder submits a bank guarantee covering the Customs duty proportionate to the shortfall in the export obligation together with 24% interest from the date of import up to 30-9-2001. He says that an application for extension made by the appellant under this provision was rejected by the licensing authority without furnishing any reason. A writ petition filed by the appellant challenging this rejection. The matter is pending before the Delhi High Court. We had already indicated earlier to the counsel for the appellant that we proposed to go ahead with the appeal before us on our p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. There has not been compliance with the notification if so construed. He supports the confiscation of the goods under clause (o) of Section 111 by pointing out that the Section will be attracted if the conditions of the exemptions are not complied with. He also points to paragraph 4 of the public notice, which provides that no extension for export obligation shall be allowed where adjudication orders have been passed. 8.It is not possible for us to agree that the public notice has the effect of amending paragraph 38 of the Policy. Paragraph 38 specifically mentions four or five years for fulfilling the export obligation. These are the same periods that are specified in the Table to the notification. Paragraph 105 of the Handbook of Proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The provisions of the Customs Act, 1962 also do not justify demanding interest. Section 28AA of the Act only applies where the duty demanded under Section 28 is not paid within three months from the date of the confirmation of the duty. Section 28AB will not be attracted in this case, the demand for duty not having arisen as a result of any of the factors specified in the proviso under sub-section (1) of Section 28. 10.The departmental representative points to the provisions of paragraph 45 of the Policy, and paragraph 103 of the Handbook of Procedures referring to the legal undertaking required to be furnished by the importer and applying for a EPGC licence. This undertaking provides a clause that the importer shall pay full amount of Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority and the Ministry of Finance, leading to what appear to be divergent views expressed by each of them. In that situation, we have to apply the provisions of the Customs Act and the notification issued thereunder. We therefore hold that there was no provision to recover interest under that law or that notification. 13.There is no allegation in the show cause notice that the importer wilfully sought to avail of the notification, so as to gain financial benefit without ever intending to attempt to comply with the export obligation. It is evident that the notification and the policy are measures intended to offer an incentive for promotion of exports. In our judgment, unless it can be shown that there was a deliberate attempt to avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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