Recovery if post clearance conditions of exemption notification not complied with
In Bombay Hospital Trust v. CC 2005 (188) ELT 374 (CESTAT 5 member LB), appellant imported medial equipment at concessional rate of customs duty, subject to certain conditions to be fulfilled after their import. It was held that this is a case of continuous obligation and there is no time limit for raising demand in such case. It was also held that in such case demand is not u/s 28 of Customs Act (parallel section 11A of CEA), but under charging section of section 12 of Customs Act (parallel section 3 of CEA) and the relevant exemption notification, even if no bond was executed at the time of import.
In Sunitidevi Singhania Hospital v. CC (2015) 317 ELT 81 (CESTAT), it was held that non-fulfilment of post import obligation is continuing obligation. Confiscation, fine and penalty can be imposed.