The appellant has obtained Duty Free Import Authorization but failed to fulfill of export obligation in prescribed period according to FTP

PJ/Case Law/2019-2020/3620

R.S. Vanijya Private Limited 18/175/14-15/ECA/KOL/Appeal-55 Dated 13.12.2018
Issue:The appellant has obtained Duty Free Import Authorization but failed to fulfill of export obligation in prescribed period according to FTP.
Brief Facts:The appellant M/s. R.S. Vanijya Private Limited has obtained Duty Free Import Authorization from DGFT. Against the above authorization, the export obligation was to be completed within a period of 36 month from the date of issue of the Authorization. The department has issued a letter to the appellant for produce documents for fulfillment of export obligation and given to personal hearing in many time but failed to produce any evidence of export obligation.
Appellant Contention: The adjudicating authority has imposed the penalty of Rs. 2,00,00,000 on the appellant along with interest p.a. under section 11(2) of the FTDR Act, 1992. The appellant have filed the appeal against the above order and requested appellate authority for waiver of pre-deposit of penalty amount and same was rejected by the appellate authority.
Respondent contention and reasoning:The contention of the appellate authority that the penalty was reduced to 10% or 100% B.G. of the penalty amount to be submitted by the company in order to hear the main appeal. On request of the appellant, the appellate authority has given 15 days extended time to submit the documents in relation to fulfillment of export obligation. The hearing was granted on 16.12.2015 & 14.11.2018 but the appellant did not appear. Last & final date of hearing was granted on 29.11.2018 which was also not attended by the appellant. The letter addressed to the “appellant” was returned undelivered with the Postal Authority remarks “Always door closed”. The personal hearing was granted to appellant several times but he did not appear as well as has not deposited 10% amount of penalty.
Order:The appellant authority has dismissed the appeal filed by the appellant and the order-in-original dated 01.09.2014 passed by Joint DGFT, Kolkata, is upheld.
Comment:It is mandatory to pre-deposit the amount if finally hearing is to be heard. The appellate authority has given option to appellant to pre-deposit 10% of penalty amount or to submit 100% Bank guarantee of the penalty amount as pre-deposit . But the appellant did not appear at all inspite of various opportunities as well as had failed to deposit the said amount. If you do not adhere to the conditions of pre-deposit and intend to delay the proceedings then the appeal is liable to be set aside.
Prepared by: vijay

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PJ/Case Law/2019-2020/3620

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