2021 (10) TMI 999 - SC - Customs

Import on concessional duty which provided Zero duty in case of CIF value of ₹ 20 crores or more and a custom duty of 10% in the other eventuality - conversion of Zero Duty EPCG licence - HELD THAT - Learned Counsel for the appellant submits that thereafter the duty amount was deposited on 16-4-2014 and subsequently even interest was deposited on being called upon to do so on 30-3-2018 and duly communicated as such, on 31-3-2018 - the subject matter of dispute stands resolved in the aforesaid terms and thus no further directions are required in this appeal. Appeal disposed off.

Summary

Issues:
Compliance with condition 6.2 for import on concessional duty regarding Zero duty and 10% duty scheme.

Analysis:
The judgment pertains to a case where the appellant was required to comply with condition 6.2 related to import on concessional duty, specifically concerning Zero duty and 10% duty scheme. The issue arose regarding the conversion of a Zero Duty EPCG license to a 10% duty scheme. The Foreign Trade Development Officer considered the matter and allowed the conversion in relaxation of the Foreign Trade Policy. The appellant deposited the duty amount and interest as required, thereby resolving the dispute. Consequently, the court found that the matter stands resolved as per the terms discussed, and no further directions were deemed necessary in the appeal. As a result, the appeal was disposed of accordingly. The judgment highlights the importance of compliance with trade policies and the resolution of disputes through proper procedures and payments as required by the authorities.

This judgment underscores the significance of adhering to trade policy conditions, specifically in cases involving concessional duty schemes such as Zero duty and 10% duty. It reflects the procedural aspect of resolving disputes related to compliance issues, emphasizing the role of authorities like the Foreign Trade Development Officer in considering and allowing conversions as per policy relaxations. The appellant's timely deposit of the duty amount and interest, upon being called upon to do so, showcases the importance of fulfilling financial obligations to resolve such disputes effectively. The court's decision to dispose of the appeal upon finding the matter resolved signifies the judicial recognition of compliance efforts and the resolution of disputes through adherence to policy conditions and payment requirements. Overall, the judgment serves as a reminder of the legal obligations and procedures involved in trade-related matters and the significance of timely compliance and resolution to avoid prolonged legal disputes.

In conclusion, the judgment provides a comprehensive analysis of the compliance issue concerning the conversion of a Zero Duty EPCG license to a 10% duty scheme under the Foreign Trade Policy. It highlights the procedural steps taken by the appellant, including the deposit of duty amount and interest, to resolve the dispute in line with the policy requirements. The court's decision to dispose of the appeal after finding the matter resolved signifies the importance of timely compliance and adherence to trade policy conditions to effectively address and resolve such disputes. The judgment serves as a legal precedent emphasizing the significance of following proper procedures and fulfilling financial obligations to ensure compliance with trade policies and the resolution of related disputes.