Imposition of penalty for misdeclaration of quantity of input in advance authorisation

PJ/Case Law/2020-2021/3644

M/s. Mayur Plastic Industries File No. 34/21/040/00037/AM20 Dated 17.06.2020
Brief Facts:The Noticee has applied advance authorisation as per SION no. H-97, duly amended vide public notice No. 69/2015-2020 dated 10.01.2019. The department issued Show Cause Notice alleging that the noticee has mis-declared the quantity of input in authorisation and liable for penalty under section 11(2) of the FTDR Act, 1992.
Issue- Imposition of penalty for misdeclaration of quantity of input in advance authorisation
Appellant/Noticee Contention’s:The department allegation is not tenable because quantity of input is rightly shown in our application according to SION. But the adjudicating authority has told us to submit Chartered Engineers certificate within one week with actually quantity required for the manufacture of resultant product.
Respondent Contention’s:The adjudicating authority has argued that the noticee have failed to produce Chartered Engineer’s certificate showing input actually required for the manufacture of resultant product. The noticee does not show any seriousness to comply with the law. It is signalling that the noticee had mis-declared the quantity in application. The Noticee is a violation of actual user condition in terms of Para 4.16 of Foreign Trade Policy, 2015-20.
Order: The Noticee is responsible for violation of the provision of Export and Import Policy and section 11 of the FTDR Act, 1992 and the adjudicating authority has imposed the penalty 40.00 lac on the noticee.
Comment:The noticee has mis declared the quantity according to SION in application. With an intention to avail more Quantity of Duty-free input namely Polypropylene granules, he attempted to defraud the Government by claiming undue duty exemption benefits on the basis of mis-declaration. Moreover, the adjudication officer has given to option the noticee to submit Chartered Engineers Certificate but noticee have to failed produce this certificate. It is clearly visible that the noticee was very casual about the document’s submission. Hence, penalty is rightly imposed on the noticee.
Prepared by: Vijay Chauhan

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PJ/Case Law/2020-2021/3644

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