COMMISSIONER OF CUSTOMS Vs. HIGHLAND KNITWEAR

JUDGEMENT

(1.) Revenue has filed this appeal being aggrieved by the order passed by learned Commissioner. The learned Commissioner in the impugned order confirmed demand of duty of Rs. 26,57,249/ - demanded interest under Section 28(i) of the Customs Act, 1962. The facts of the case briefly stated are that the respondent herein is an exporter and was availing the benefit of duty exemption under the DEEC scheme. The respondent herein imported Acrylic Staple Fibre under the scheme. Under the scheme the respondent herein was permitted to meet the export obligation within a period of 18 months. The respondent herein found that there was difficulty in meeting the export obligation on account of number of commercial reasons. He, therefore, paid duty and interest and cleared the goods for home consumption. The Commissioner adjudicating the case refrained from imposing penalty being aggrieved by this order revenue has filed the present appeal.

(2.) We have heard Shri Mewa Singh, learned SDR for the Revenue and Shri Sudhir Malhotra, ld. Advocate for the respondent.

(3.) In the instant case we note that the respondent herein had imported Acrylic Staple Fibre with intention to convert it into final product and export the same. We further note that the respondent could not meet his export obligation because of number of circumstances. He, therefore, paid duty and interest on the goods.