TOUCH STONE MINING Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) In this appeal which has been filed by the appellants against the impugned order -in -original, the issue relates to the liability of the appellants to pay penalty and interest as confirmed against them under Section 112 of the Customs Act.

(2.) The facts are not much in dispute. The appellants imported various inputs on the strength of quantity Based Advance Licence dated 20th May, 1995. They availed exemption from payment of duty under the exemption Notification No. 82/95, dated 26 -5 -1995. They admittedly failed to discharge the export obligation and accordingly on demand, they paid the entire duty amount in terms of clause (b) of the notification.

(3.) The adjudicating authority has imposed penalty of Rs. 1 lakh under Section 112(a) for violation of the provisions of Section 111(o) of the Customs Act and also directed the appellants to pay interest. He has, however, not referred to any provision of the Act or Notification under which he has so ordered.