Penalty cannot be imposed on EOUs for failure to achieve positive NFE

Top Forty Suspension (P) Ltd. Vs Commissioner of Central Excise (CESTAT Chandigarh) CESTAT Chandigarh held that penalty u/s. 112 not imposable as goods are not held liable for confiscation. Further, penalty cannot be imposed on EOUs for failure to achieve positive NFE. Facts- The appellants are a 100% EOU; they have imported certain capital goods availing benefit of Notification No.53/97 and domestically procured capital goods availing Notification No.1/95-CE dated 04.01.1995. Revenue alleged that the appellant has not fulfilled export obligation and therefore, is required to pay back the Cust...