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2010 (6) TMI 199 - HC - CustomsEPCG Scheme- The appellant had initiated proceedings against the respondent by issuing demand notice. The same has been assailed by the respondent before the jurisdictional competent authority which in turn confirmed the demand made by the Commissioner of Customs in their order-in-original No. 44/2004-Cus. Adjn. (Commr.) dated 28-12-2004 vide Annexure-C holding that respondent has failed to comply the terms and conditions of the licence is sued under EPCG scheme and relevant notification dated 1-4-1997 bearing No; 29/1997. The Tribunal after careful perusal of material on record after affording reasonable opportunity of hearing allowed the appeal by assessee and set aside the order passed by the Commissioner of Customs - no material irregularity committed by the Tribunal in allowing the appeal filed by the respondent
Issues:
1. Interpretation of JDGFT's extension of license period for export obligation. 2. Reliance on previous case law by the Tribunal. 3. Compliance with terms and conditions of the import license under EPCG scheme. Issue 1: Interpretation of JDGFT's extension of license period for export obligation: The appellant contested the Tribunal's conclusion that JDGFT extended the license period for the export obligation's first block. The appellant argued that the JDGFT's letter specifically mentioned an extension only for the 2nd and 3rd blocks. However, the Tribunal, after reviewing the communication from JDGFT dated 12-8-2004, extended the export obligation period for two years until 2-8-2007 in accordance with Handbook of Procedures 2004-2009. The Tribunal relied on the judgment in the case of Torus India Ltd. to set aside the demands as premature, similar to the circumstances in this case. Issue 2: Reliance on previous case law by the Tribunal: The Tribunal considered the communication from JDGFT dated 12-8-2004, which extended the import obligation period for the respondent until 2-8-2007. Both parties confirmed this extension during the hearing. The Tribunal found no error in its decision to allow the appeal based on this extension, as it was not brought to the notice of the Commissioner of Customs before the original order was passed. The Tribunal's decision was further supported by the lack of grounds presented by the appellant to interfere with the order. Issue 3: Compliance with terms and conditions of the import license under EPCG scheme: The respondent had obtained an import license under the EPCG Scheme and had renewed it until 2007. The appellant initiated proceedings against the respondent for non-compliance with the terms and conditions of the license, leading to a demand notice. The competent authority confirmed the demand, stating that the respondent failed to fulfill the export obligation related to the first block. However, the Tribunal, after considering the extension of the import obligation period by JDGFT, set aside the Commissioner of Customs' order. The High Court, upon review, found no legal error or irregularity in the Tribunal's decision and dismissed the appeal filed by the appellant. In conclusion, the High Court upheld the Tribunal's decision based on the extension granted by JDGFT and the lack of grounds presented by the appellant to challenge the order. The judgment emphasizes the importance of complying with the terms and conditions of import licenses under the EPCG scheme and the significance of communication and extensions provided by relevant authorities in such cases.
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