SQUARE D TEXTILES EXPORTS LTD. Vs. CC

JUDGEMENT

(1.) THIS appeal is directed against the Order -in -Original No. 19/2001 (Commissioner) dated 29.3.2001 by which the Commissioner has confiscated the textile machinery imported by the appellants, under Section 111(o) of the Customs Act, 1962 with an option to redeem the same on payment of fine of Rs. 20,00,000 under Section 125 of the Customs Act, 1962. The Commissioner has also confirmed a duty demand of Rs. 1,27,11,468 under Section 28 of the Customs Act. He has also ordered for recovery of interest at the rate of 24% on the amount of duty foregone under Section 28AA of the Customs Act, with effect from 7.3.1996. Penalty of Rs 10,00,000 has also been imposed on the appellants under Section 112 (a) of the Customs Act, 1962 and has also directed that duty, fine, interest and penalty should be recovered by enforcing the Bank Guarantee and the balance should be recovered from the party.

(2.) THIS is the second routed of litigation before the Tribunal as the matter was once remanded for de novo consideration as the adjudicating authority had earlier decided the case ex -parte. The brief facts of the case are that the appellants had obtained Zero Duty EPCG licence No. P/CG/2156076 dated 12.9.95 for import of textile machinery for the CIF value of Rs. 23,40,87,598 with a validity period of two years and the validity period of the licence was extended by one year i.e. up to 12.9.98. The appellants imported textile machinery worth Rs. 8,41,06,842 at nil rate of duty. The DGFT had directed the party to pay Customs duty along with interest. The import of the said machinery was in violation of the Zero duty EPCG licence, Customs Notification No. 111/95 read with para 38 of the Import policy inasmuch as the appellants did not import machinery to the threshold value of Rs. 20 crores as stipulated in the Customs Notification No. 111 /95 dated 5.6.95. They had not done so, even during the extended period of the licence. Out of the import of machineries worth Rs. 8,41,06,842, machineries worth Rs. 3,38,40,845 involving duty of Rs. 1,27,11,468 was imported through Tuticorm Port and the rest through Chennai Port. The show cause notice confined only to the import made through the Tuticorm Port. After considering the submissions made by the party during the personal hearing on 22.3.2001, the present impugned order has been passed against which the appellants have come in appeal on the following grounds:

(3.) THEY have also stated in the miscellaneous petition submitted on 8.4.2002 that the DGFT vide their letter F. No. 18/104/AM 96/EPCG II/896 dated 21.2.2002 has communicated that conversion of the EPCG licence No. P/CG/2156076 dated 12.9.1995 into 15% duty licence is in order and is retrospective and that 24% interest need not be insisted upon by the Customs since the same is not payable by the firm in the present case.