2016 (1) TMI 1171 - HC - Customs

Demand - Advance licences - non-submission of Export Obligation Discharge Certificate - Held that - the Petitioner has obtained EODCs from the DGFT in respect of the two Advance Licences in question on 20th October, 2015 and 19th November, 2015, the orders-in-original dated 28th March, 2014 in respect of the two Advance Licences Nos.0510186581 dated 13th July, 2006 and 0510203035 dated 27th April, 2007 are hereby set aside. The corresponding orders in appeal passed by the Commissioner (Appeals) dated 7th July, 2015 are also hereby set aside. The Adjudicating Authority, i.e. the Deputy Commissioner ( Respondent No.3 herein) is directed to adjudicate the SCNs issued to the Petitioner in respect of their aforementioned two Advance Licences afresh after taking into account the EODCs obtained by the Petitioner from the DGFT - The Petitioner is permitted to bring this order to the notice of the CESTAT to urge that the Petitioner s two pending appeals have been rendered infructuous - petition disposed off.

Issues:
1. Non-submission of Export Obligation Discharge Certificate (EODC) leading to Show Cause Notices (SCNs) and customs duty demands.
2. Appeals filed against the demands and penalty imposed.
3. Receipt of EODCs by the Petitioner and submission to the Commissioner of Customs.
4. Previous court orders setting aside orders and remanding matters for fresh examination considering EODCs.
5. Setting aside of orders-in-original and corresponding appeal orders based on EODCs obtained by the Petitioner.
6. Directions to the Adjudicating Authority to reexamine SCNs in light of EODCs.
7. Permission for the Petitioner to inform CESTAT about rendered appeals infructuous.
8. Disposal of the petitions with specific terms.
9. Issuance of orders dasti.

Analysis:

1. The judgment addresses the issue arising from the Petitioner's failure to submit the Export Obligation Discharge Certificate (EODC), resulting in the Assistant Commissioner of Customs issuing Show Cause Notices (SCNs) for customs duty demands. The Petitioner had obtained three advance licenses for duty-free import of raw material. Appeals against the demands and penalties imposed were disposed of by a common order, with one demand set aside and two dismissed.

2. Subsequently, the Petitioner received the EODCs for two advance licenses and submitted them to the Commissioner of Customs. Citing similar past cases, the Court set aside previous orders and remanded the matter for fresh examination, considering the EODCs obtained by the Petitioner. This action was taken to ensure a fair assessment based on the updated information provided by the EODCs.

3. Based on the Petitioner's receipt of EODCs from the Directorate General of Foreign Trade (DGFT), the Court set aside the orders-in-original and corresponding appeal orders related to the two advance licenses. The Adjudicating Authority, the Deputy Commissioner, was directed to reexamine the SCNs issued to the Petitioner in light of the EODCs obtained, ensuring a comprehensive review of the situation.

4. The judgment also permitted the Petitioner to inform the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) about the rendered appeals being no longer applicable due to the updated circumstances. This step aimed to streamline the legal process and avoid unnecessary proceedings based on outdated information or demands.

5. Ultimately, the petitions were disposed of with specific terms outlined in the judgment, providing clarity on the actions to be taken by the concerned parties. The issuance of orders dasti facilitated the implementation and communication of the judgment's directives effectively.

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