ARASAN TEXTILE MILLS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is directed against the order -in -original No. 12/97 (Commissioner), dated 22 -12 -97 by which the Commissioner has ordered confiscation of Schlofrost Auto Cone Winder imported under Bill of Entry No. 45, dated 9 -11 -90 with CIF value of Rs. 48,37,276/ - on the ground of non fulfillment of the export obligation as contemplated in Notification No. 71/87, dated 1 -3 -87 as amended, under Section 111(o) of the Customs Act, 1962. However, he allowed the importer to redeem the same on payment of redemption fine of Rs. 25 lakhs in lieu of the confiscation, and imposed penalty of Rs. 10 lakhs on the importer under Section 112 (a) of the Act ibid.

(2.) APPEARING on behalf of the appellants Shri N. Venkatraman, Advocate and Shri Muthu Venkatraman, Advocate submitted that the findings recorded by ld. Commissioner are factually incorrect inasmuch as the export obligation against the import of 1 No. Schlofrost Auto Cone Winder imported under concessional rate of Customs duty under the Notification No. 71/87 -Cus., dated 1 -3 -87 as amended from time to time, they have submitted the certificate issued by Shri N.S. Rawat, Deputy Director of the Office of the Textile Commissioner, Mumbai in a letter addressed to Shri V. Murugesan Foreign Trade Development Officer, Madurai. Moreover, Shri V. Murugesan, Foreign Trade Development Officer, vide his letter No. Misc/BOND/44/90 -91/OGL/3461, dated 27 -3 -1997 enclosed a copy as a proof of the completion of the export obligation, issued by the Deputy Director of the Office of the Textile Commissioner, Mumbai informing the DRI (Regional Cell), Trichy that the firm had completed the export obligation over and above the average export performance of the preceding three years and also certified that the firm had fulfilled the export obligation against the import of the said machinery.

(3.) APPEARING on behalf of the Revenue, ld. DR Shri C. Mani invited out attention to the impugned order that there is a difference in the figures and a short fall of Rs. 1,35,295/ - in the average export performance for the years 90 -91 and 94 -95. He further submits from the average export performance the difference comes to Rs. 1,16,54,041/ -. The above figure has been arrived at by excluding the export made through merchant exporter.