Levy of Penalty while waiver of customs duty - Foreign Trade ...

Case Laws     Customs

May 15, 2024

Levy of Penalty while waiver of customs duty - Foreign Trade (Development and Regulation) Act, 1992 (FT Act) - While the rehabilitation scheme sanctioned by BIFR provided for a waiver of customs duty and interest, the penalty was specifically imposed under Section 11(2) of the FT Act for non-fulfillment of export obligations - The court scrutinized the language of Section 11(2) and emphasized that it applies when there is a contravention of the provisions of the FT Act, rules, or foreign trade policy. In this case, the failure to fulfill the export obligation did not amount to a contravention under Section 11(2). As such, the imposition of the penalty was deemed unjustified.

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