2021 (6) TMI 907 - HC - Customs

Recovery of Customs Dues - non-fulfilment of export obligation under Export Promotional Capital Goods (EPCG) Authorization - entitlement to release bank guarantee or not - HELD THAT - This Court is of the considered opinion that the impugned order is for recovery of Government dues for the alleged non-fulfilment of EODC - Now the petitioner has approached the Joint Director General of Foreign Trade for issuance of EODC. The application is pending. The learned counsel for the petitioner also made a submission that he will approach the authority for early disposal of the application and therefore, some time is to be granted for submission of the said certificate. In view of the facts and circumstances, thirty days time is granted for the purpose of submission of EODC by the writ petitioner. In the event of not submitting the said certificate to the respondents within a period of thirty days from the date of receipt of a copy of this order, the respondents are at liberty to realise the bank guarantee already furnished by the writ petitioner - Petition disposed off.

Summary

Issues:
Challenge to recovery order for non-fulfilment of export obligation under EPCG authorization.

Analysis:
The judgment pertains to a writ challenging an order by the Assistant Commissioner of Customs for recovery of dues due to non-fulfilment of export obligations under an EPCG authorization. The petitioner, a private limited company in the travel and tourism sector, had approached the Joint Director General of Foreign Trade for an Export Obligation Discharge Certificate (EODC), which was pending. The petitioner sought to keep the bank guarantee alive until the EODC was obtained. The respondents argued that the petitioner had not fulfilled export obligations, evaded statutory dues, and not submitted the EODC. The court noted that the impugned order aimed at recovering government dues for alleged non-fulfilment of EODC requirements. It granted the petitioner thirty days to submit the EODC, failing which the respondents could realize the bank guarantee. The judgment disposed of the writ petition without costs, with the connected miscellaneous petition closed.