Page 188 - ELT_1st August 2020_Vol 373_Part 3

370 EXCISE LAW TIMES [ Vol. 373

4. In W.P. No. 22282 of 2009, the petitioner has challenged the order-in-
appeal, dated 27-11-2008 Bearing Reference No. 11/47/08-09/ECA-I/1583 of the
2nd respondent Additional Director General of Foreign Trade (as an Appellate
Authority) under the provisions of the Foreign Trade (Development and Regula-
tion) Act, 1992 against the order dated 13-2-2008 bearing reference F.No.
32/95/181/00045/AM05 of the 3rd respondent Joint Director-General of Foreign
Trade, Coimbatore.
5. The Joint Director General of Foreign Trade had earlier passed an
order dated 13-2-2008 and had imposed a penalty of Rs. 1,63,44,084/- on the Peti-
tioner in W.P. No. 22282 of 2009 under Section 11(2) of the Foreign Trade (Devel-
opment and Regulation) Act, 1992 pursuant to Show Cause Notice dated 2-5-
2005 bearing reference F.No. 32/95/181/00045/AM05.
6. By the impugned order dated 27-11-2008, the 2nd respondent Addi-
tional Director-General of Foreign Trade (as an Appellate Authority) has partly
allowed the appeal by reducing the penalty to Rs. 50,000/-, but at the same time
has imposed interest at 15% from 16-9-1993 to 31-12-2003 amounting to
Rs. 5,78,232/- as against the customs duty foregone at the time of import for a
sum of Rs. 2,52,090/-.
7. In both the cases, the petitioners have imported capital goods on
payment of at concessional rate of customs duty in terms of Notification No.
160/92-Cus., dated 20-4-1992 of the Central Government of India, Ministry of
Finance (Department of Revenue), for import of capital goods under the Export
Promotion Capital Goods scheme (EPCG). The said Notification was issued to
implement the decision of the Government of India, Ministry of Commerce in the
Export and Import Policy as in force between 1st April, 1992 and 31st March 1997
announced under Section 5 of the aforesaid Act.
8. Paragraph Nos. 102 to 104 of the said Policy read as under :
102. Before clearance of goods through Customs, the importer shall exe-
cute an Indemnity-cum-Surety Bond for fulfillment of the export obligation
with the licensing authority in whose jurisdiction the licensee is situated or
the Export Obligation Cell in the Office of the Chief Controller of Imports
and Exports, Udyog Bhawan, New Delhi. All bonds, after acceptance, shall
be transferred to the Export Obligation Cell in the office of the Chief Con-
troller of Imports and Exports, which shall monitor the progress made to-
wards fulfillment of export obligation. The amount of bank guarantee shall
be equivalent to the full value of the duty saved through import under this
scheme.
103. The EPCG licence holder shall submit, every six months a progress
report of his exports, as certified by a chartered accountant, to the Chief
Controller of Imports and Exports. Further, for redemption of his Indemni-
ty-cum-Surety Bond, on the completion of his export obligation, he shall
submit a consolidated statement of his exports, as certified by a chartered
accountant, along with a certificate from his banker, confirming the realiza-
tion of the export proceeds.
104. Failure to fulfil the export obligation shall entail penal action under
the Imports and Exports (Control) Act, 1947, Imports (Control) Order, 1955
and the Customs Act, 1962.
105. In case of failure to fulfil the export obligation, either in full or in
part, within the stipulated period, the Indemnity-cum-Surety Bond shall be

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