2014 (6) TMI 907 - AT - Customs

Denial of benefit of EPCG License - Non fulfillment of conditions - Held that - There is no dispute that the goods were imported under EPCG licence. The goods were covered under the said licence and were also cleared. There was a requirement of Type Approval Certificate, which was not fulfilled at the time of import. Even the certificate has been produced by the appellant, even though it has been produced after a long time i.e. on 30-8-2010 and in the meantime in 2004, even the requirement of Type Approval Certificate was dispensed with. The judgment of the Hon ble Bombay High Court would not be applicable in the present situation, as the goods have been imported against the EPCG licence and only a procedural requirement of producing a certificate has been dispensed with, which has also been complied with. The appellant has even complied with the said condition though late - Decided in favour of assessee.

Summary

Issues:
1. Import of car under EPCG scheme without Type Approval Certificate.
2. Applicability of subsequent policy changes on import requirements.
3. Interpretation of Import Policy at the time of license issuance.

Analysis:
1. The appellant imported a car under the EPCG scheme without the required Type Approval Certificate as mandated by Import Licensing Notes. The appellant later obtained the certificate, albeit after a significant delay, and fulfilled the export obligation. The Tribunal noted the relaxation of the certificate requirement by a subsequent DGFT notification in 2004.

2. The appellant relied on precedents such as Metro Palace Hotel Pvt. Ltd. and Rahul Bhandare cases from the Tribunal, along with a judgment from the High Court of Kerala. The Advocate argued that the subsequent relaxation of the certificate requirement should apply to their case, emphasizing compliance with the condition albeit belatedly.

3. The Additional Commissioner argued against the appellant, citing the judgment of the Bombay High Court in Singhania Associates case, emphasizing the importance of adhering to the Import Policy at the time of license issuance. However, the Tribunal distinguished the present case, highlighting that the goods were imported under the EPCG license, and the procedural requirement of the certificate was later dispensed with and fulfilled by the appellant.

4. After considering the submissions, the Tribunal found that the goods were imported under the EPCG license, and the requirement of the Type Approval Certificate, though initially unmet, was eventually fulfilled by the appellant. The Tribunal held that the subsequent relaxation of the certificate requirement applied to the case and allowed the appeal, emphasizing the compliance with the condition despite the delay in obtaining the certificate. The judgment of the Bombay High Court regarding the importance of the Import Policy at the time of license issuance was deemed inapplicable in this context.