Case Law Details
L. R. Brothers Indo Flora Ltd. Vs. Commissioner of Central Excise (Supreme Court)
The appellant being a 100% EOU and into manufacture of cut flowers, without obtaining the approval of the Development Commissioner and without maintaining the requisite net foreign exchange earning, made DTA sales to the extent of Rs.38,40,537/ during 1998-99 to 200001 (upto December 2000), in contravention of the provisions of EXIM Policy. Notably, the appellant subsequently sought ex-post facto approval from the Development Commissioner vide letter dated 6.2.2001.
Show cause issued as to why customs duty, interest and penalty should not be imposed for the DTA sales made by the appellant in contravention of the EXIM Policy, that too after having availed the exemptions under the exemption notification concerned on the import of green house equipment, raw materials like Live Rose Plants and consumables like planting materials and fertilizers.
After according opportunity of being heard, the Additional Commissioner adjudged the show cause notice and held that the DTA sales were made without permission of the Development Commissioner and in contravention of the EXIM Policy and therefore, customs duty is leviable upon the appellant for the said sales. It was further held that the appellant had wilfully suppressed facts and thus Section 28 of the Customs Act, 1962 was invoked in the present case. Demand subsequently confirmed by Commissioner Appeals as well as CESTAT leading to present Civil Appeal.
Held:
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