2018 (8) TMI 1241 - AT - Customs

Advance Authorization - non-fulfillment of export obligation - appellant has failed to produce the required EODC showing that they have fulfilled the export obligation - Held that - The appellant has completed the export obligation which has been certified in the letter issued by the DGFT - Since the only ground on which demand was confirmed was non-submission of EODC and the same has now been submitted by the appellant. In view of this redemption letter, the impugned order is not sustainable in law - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against rejection of export obligation fulfillment
- Non-submission of Export Obligation Discharge Certificate (EODC)
- Redemption letter from DGFT as evidence of export obligation fulfillment

Analysis:
The appeal before the Appellate Tribunal CESTAT Bangalore challenged the rejection of the appellant's appeal by the Commissioner of Customs (Appeal) regarding the fulfillment of export obligations. The appellant, engaged in manufacturing Expandable Polystyrene Foam products and Wooden Pallets, faced a show-cause notice for not meeting export obligations against an Advance Authorization. The Joint Commissioner confirmed the demand due to non-submission of the Export Obligation Discharge Certificate (EODC). The Commissioner upheld this decision, emphasizing the appellant's failure to produce the required EODC.

During the hearing, the appellant's counsel argued that they had fulfilled the export obligations, applied for the EODC, and eventually submitted it to the Tribunal. The EODC, issued by the DGFT, indicated full compliance with export obligations, including value and quantity terms, as per the Handbook of Procedures. Relying on this redemption letter, the appellant sought allowance of the appeal.

Upon review, the Tribunal examined the redemption letter from the DGFT and acknowledged that the appellant had indeed fulfilled the export obligations, as certified in the letter. Given that the demand was based solely on non-submission of the EODC, and the appellant had now provided it along with the redemption letter, the Tribunal deemed the impugned order unsustainable in law. Consequently, the Tribunal set aside the Commissioner's decision and allowed the appeal of the appellant. The operative part of the order was pronounced in open court on 26/07/2018.