2021 (1) TMI 870 - AT - Customs

Non-fulfilment of export obligation in case of import of goods under EPCG License - HELD THAT - However, now as per the submission of the learned counsel the EODC issued by DGFT was obtained only after passing of the impugned order. In these circumstances, the entire matter should be reconsidered by the adjudicating authority in the light of the EODC issued by the DGFT. The appeal is allowed by way of remand to the adjudicating authority.

Summary

Issues:
Appellant's failure to fulfill export obligation under EPCG License.

Analysis:
The appellant's counsel argued that the demand was confirmed due to the appellant's failure to meet the export obligation under the EPCG License. The counsel informed that the appellant was pursuing the matter with DGFT for the fulfillment of Export Obligation Discharge Certificate (EODC) and requested time for the same. However, the adjudicating authority proceeded with the order without waiting for the submission. Subsequently, the EODC was received after the Commissioner (Appeals) passed the order, which was not considered by the lower authorities.

The revenue's representative reiterated the findings of the impugned order and mentioned that during adjudication, the license was lost, and a duplicate copy was obtained from DGFT.

Upon reviewing the submissions from both sides, the Tribunal noted that the crux of the case revolved around the appellant's failure to fulfill the export obligation under the EPCG scheme. The Tribunal acknowledged that the EODC issued by DGFT was obtained post the impugned order. Consequently, the Tribunal deemed it necessary for the adjudicating authority to reconsider the entire matter in light of the EODC issued by DGFT.

In conclusion, the impugned order was set aside, and the appeal was allowed for remand to the adjudicating authority, with all issues left open for consideration. The adjudicating authority was directed to pass a fresh order within three months from the date of the Tribunal's decision.