Jothi Art Calendars Vs Commissioner of Customs (CESTAT Chennai)
The appeal challenged Order-in-Appeal No. 71/2016-UN (CUS) dated 02.06.2016 passed by the Commissioner of Customs (Appeals-II), Trichy. The appellant had imported a Mitsubishi Sheet Fed Offset Printing Press under the EPCG Scheme through Bill of Entry No. 422779 dated 31.10.2007 by availing concessional customs duty. Under the EPCG Scheme and Notification No. 97/2004-Cus dated 17.09.2004, the appellant was required to fulfil an export obligation equivalent to eight times the duty saved, with 50% of the obligation to be completed during the first six-year block and the balance during the following two years. The total duty saved was Rs. 71,60,400.
Following an investigation by the Directorate of Revenue Intelligence (DRI), it was alleged that the appellant had failed to fulfil 50% of the export obligation during the first block period and had not obtained any extension of time from the competent authority. Consequently, a show cause notice was issued demanding differential duty of Rs. 22,17,580, representing 50% of the duty foregone, along with applicable interest. The adjudicating authority denied the exemption, confiscated the imported machine, confirmed the demand of duty and interest, and imposed a penalty of Rs. 25,000. The Commissioner (Appeals) upheld the order, leading to the present appeal.
