PSA SICAL TERMINALS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) For the purpose of hearing this appeal, appellants are required to pre -deposit Rs. 21,60,84,019/ - confirmed under Section 28(1) of the Customs Act, 1962 besides interest of Rs. 12,82,31,199/ - for non -compliance of Notification No. 28/97 -Cus., 1 -4 -97. The capital goods have been ordered to be confiscated. However, they have been directed to be released on payment of redemption fine of Rs. 4.50 crores. There is personal penalty of like amount of duty under Section 114A of the Customs Act, 1962.

(2.) The short facts of the case are that appellants, who are a private terminal operator at Tuticorin, have obtained EPCG licence for export of service under port handing services export category. In terms of the licence and the concerned notification, they are required to earn money only in freely convertible foreign currency for services rendered through utilisation of such capital goods. The period for expiry of the licence is 5 years. However, even before the expiry of the period of five years, Revenue has proceeded against the appellants on the ground that they have earned foreign exchange in Indian rupees and not freely convertible foreign currency. On that premise, proceedings were initiated for violation of the said notification and after due process of adjudication, the final order has been passed confirming demands, penalty, confiscation of goods and granting redemption on payment of fine and for penalty under Section 114A of the Customs Act.

(3.) We have heard Shri Arshad Hidayatullah, Senior Advocate accompanied by his juniors.