Per P.S. Bajaj : This appeal has been filed by the appellants against the impugned Order-in-original dated 21.12.2000 vide which the Commissioner had confirmed duty demand and imposed penalty on the appellants, as detailed therein.

2. The facts are not much in dispute. The appellants are 100% export oriented unit. They are engaged in the manufacture of diamond impregnated segments and for this purpose, they imported capital goods and raw material in terms of notification No. 13/81 dated 9.2.81 without payment of duty but they failed to achieve prescribed value addition and fulfill export obligation as stipulated in LOP. They were accordingly served with show cause notice for the recovery of customs duty alongwith interest and penalty was also proposed to be imposed on them. They, however, contested the correctness of the notice by alleging that short fall in export obligation was due to various problems like lack of technical support, power shortage, over all recession etc. They also averred that the proceedings against them could not be initiated as the Development Commissioner had not; yet given any order against them by holding that; they had failed to fulfill the export obl