Whether penalty shouldn?t be imposed on the fact that petitioner has submitted relevant documents for redemption of license after receipt of order-in-original?

PJ/Case Law/2020-2021/3638

Sangu Knit Lands 18/33/2019-20/ECA.1 (E)/72 dated 28.07.2020
Brief Cases: The appellant has obtained 4 (four) EPCG Authorization from DGFT and fulfillment of export obligation within 8 year from date of issue of above authorization. But the appellant have failed to produce document for redemption before DGFT with prescribed period expired in 2011-2012. The DGFT was issued Show Cause Notice to the appellant. The appellant have failed to file reply to above Show Cause Notice and imposed the penalty on the firm and its partner by DGFT. The appellant have filed the appeal against the above order before appellate authority. The appellate authority has rejected the above appeal on ground that the appeal is time barred.
Issue- Whether penalty shouldn’t be imposed on the fact that petitioner has submitted relevant documents for redemption of license after receipt of order-in-original?
Appellant Contention’s:The petitioner has submitted the review Petition on the following ground:

Export obligation has completed in March 2006 and all the export proceeds were also received through the normal banking channel.
It could not apply the redemption of EPCG Application on time due to fact that the relevant documents were not readily traceable as the dealing staff expired.
After adjudication orders, the Petitioner located the relevant documents and submitted requests for redemption in July, 2018.

The penalty should be waived on the above grounds.
Respondents Contention’s: The petitioner has submitted all the relevant documents for redemption of license after receipt of order-in-original. The petitioner has completed export obligation and maintained annual average as mention in the above license.
Order:The Review Appeal is admitted and order-in-appeal and order-original are set aside. The matter is remanded back for de-novo consideration by adjudicating authority.
Comments:The appellate authority has taken lenient view against grounds of petitioner and allowed the review appeal filed by petitioner. The basic intention of inserting time limit for any compliance of law is to make the assessee more disciplined and law abiding. The law has never been formulated for the undue harassment of the aseesee.
Prepared by- Vijay Singh

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PJ/Case Law/2020-2021/3638

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