2023 (11) TMI 226 - AT - Customs

EPCG Scheme - Failure to fulfil the Export Obligation - non-production of discharge/redemption certificate (EODC) from the ADGFT authorities within the prescribed time - HELD THAT - The matter has to be verified by the adjudicating authority, for which reason the impugned order set aside and the issue remitted to the adjudicating authority for the limited purpose of verification and thereafter grant such benefits to the appellant, as the appellant may be entitled to, in law, consequent to the production of EODC. Appeal disposed off.

Summary

Issues Involved:
The issues involved in this case include non-fulfillment of Export Obligation under EPCG Licenses, issuance of Show Cause Notice for confiscation of capital goods, demand for Customs duty, penalty under Customs Act, 1962, and the appellant's appeal against the Order-in-Original confirming the demands.

Issue 1: Export Obligation Non-Fulfillment
The appellant imported capital goods under EPCG Authorizations but failed to fulfill the Export Obligation as required by Customs Notifications. The Revenue issued a Show Cause Notice proposing confiscation of goods, demanding Customs duty, interest, and penalty u/s 111(o) and 112(a) of the Customs Act, 1962.

Issue 2: Redemption Certificate Submission
The appellant claimed to have fulfilled the Export Obligation for all EPCG Licenses. They submitted necessary documents for redemption certificates, but there was no response from authorities for three licenses. Redemption letters were received for one license, and the appellant requested time for the EODC issuance.

Issue 3: Adjudication and Appeal
The Order-in-Original confirmed demands for three licenses, dropping proceedings for one due to a redemption letter. The appellant appealed, contending fulfillment of obligations and submission of required documents. The Assistant Commissioner defended the order, acknowledging the EODC requirement.

Judgment Summary:
Upon hearing both parties, the Tribunal found the need for verification by the adjudicating authority regarding the EODC. The impugned order was set aside, and the issue was remitted for verification. The appellant was to be granted benefits under the law upon production of the EODC. The appeal was disposed of accordingly.