Per V.K. Ashtana :

To get this appeal heard, the appellants are required to pre-deposit duty amount of Rs. 2,01,11,727 under the Customs Act, 1962 and Rs. 2,40,356/- under the Central Excise Act, 1944, Interest @ 20% on the Customs duty of Rs. 1,47,787/-involved, and penalty of Rs. 20 lakhs under the Customs Act, and Rs. 25,000/- under the Central Excise Act.

2. The basic issue concerns non-fulfilment of the minimum value addition of goods exported by this 100% EOU and hence order impugned has confirmed the duties.

3. Heard Shri BV Kumar, learned Counsel for the appellants, and Shri S. Kannan, learned DR for the respondent.

4. The learned Counsel submits that in para 9 of the order impugned i.e. the order in original No. 16/99 dated 29.12.99 passed by the Commissioner, the learned adjudicating authority himself has observed as follows :

"The allegation made against them was that they violated the conditions of the letter of intent, which was governed by the EXIM Policy under para 9.26 of the EXIM Policy 1997-2002 (erstwhile para), the 100% EOUs are to be de-bonded on their inability to achieve export obligation, net foreign exchange as percentage of export prescribed or other requi