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2022 (4) TMI 790 - HC - CustomsWaiver of customs duty for import - Export Obligation Discharge Certificate - fulfilment of export obligation or not - HELD THAT - This Court feels that, a direction can be given to the 3rd respondent to pass orders on the application of the petitioner dated 21.10.2013 within a time frame for issuance of EODC and based on which, further action could be decided by the 1st respondent, till such time, the impugned order can be kept in abeyance. There shall be a direction to the 3rd respondent to pass orders on the application of the petitioner dated 21.10.2013 by taking into account the reply submitted by the petitioner dated 27.12.2021, in response to the show cause dated 07.12.2021 and accordingly pass orders for grant of EODC if the petitioner is otherwise eligible for the same, within a period of four weeks from the date of receipt of a copy of this order - Petition disposed off.
Issues:
Delay in issuance of Export Obligation Discharge Certificate (EODC) by the Joint Director General of Foreign Trade, Government of India leading to the invocation of Bank guarantee by Customs Authority. Analysis: The petitioner, an Exporter, sought a writ of certiorari to quash a communication letter dated 17.03.2022 from the Customs Authority due to the delay in issuing the EODC by the 3rd respondent. The petitioner fulfilled the export obligation and applied for the EODC on 21.10.2013, but it was pending for several years. Despite replying to notices and explaining the situation, the EODC was not issued, leading to a notice from Customs to invoke the Bank guarantee. The petitioner relied on a circular from the Ministry of Finance indicating that Customs can proceed based on exporter's input without the EODC. The petitioner aimed to benefit from this circular. However, the Customs Authority issued a communication to invoke the Bank guarantee by 15.04.2022, prompting the writ petition. The Customs Authority argued that a time frame could be given to the 3rd respondent to decide on the EODC application, and until then, they could await the EODC before taking further action. The Court considered both sides' submissions and directed the 3rd respondent to decide on the petitioner's application within four weeks of the order. Once the EODC is issued, the petitioner can provide it to the Customs Authority for further action. Until then, the impugned order dated 17.03.2022 will be kept in abeyance. The Court disposed of the writ petition with these directions, emphasizing the importance of timely decision-making by the 3rd respondent to avoid penalizing the petitioner for delays beyond their control.
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