Case Law Details
Commissioner of Customs (Port) Vs Patna Offset Press (CESTAT Kolkata)
Introduction: Explore the recent CESTAT Kolkata order in the case of Commissioner of Customs (Port) vs. Patna Offset Press. The appeal revolves around the non-imposition of redemption fine and penalty despite the respondent’s failure to fulfill export obligations as per Customs Notification. Delve into the details of the case, the Handbook of Procedures, and the key arguments presented by both parties.
Detailed Analysis: The Commissioner of Customs (Port) filed an appeal against the order where no redemption fine and penalty were imposed on Patna Offset Press. The respondent held a Zero Duty EPCG Authorization, and the dispute arose due to their failure to fulfill export obligations within the specified block periods. The respondent, unaware of the specific condition, paid duty and interest promptly upon investigation.
The Customs Notification (No.102/2009-Cus) outlines the conditions, including the obligation to fulfill export targets within specified blocks. The Handbook of Procedures for Foreign Trade Policy provides guidelines for such cases. The respondent, thinking they had six years to meet obligations, paid duty and interest only after four years. The adjudicating authority refrained from imposing redemption fine and penalty, considering the respondent’s immediate compliance upon being informed.
The revenue argued that violation of Notification conditions warrants redemption fine and penalty. In response, the consultant for the respondent highlighted the confusion arising from the interpretation of the export obligation period. The respondent, acting promptly upon realizing the obligation, paid duty and interest, indicating compliance.
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