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TMI Blog2006 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... 06 - [Order per : K.K. Agarwal, Member (T)]. - This is revenue's appeal. The brief facts of the case are that the respondents M/s Mono Acri Glass Industries Pvt. Ltd. imported extrusion production line under EPCG licence issued to them allowing clearance of goods at the rate of 10% of the duty. The condition of the licence was that the importers shall in addition to the legal undertaking given b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard's Circular No. 71/98, dated 15-9-1998 according to which a licence holder who has no previous licence issued under EPCG scheme but has export turn over of Rs. 1 Crore or more in the preceding financial yepr was exempted from furnishing a bank guarantee. The respondents contended that since the export turn over of their parent company was more than Rs. 1 Crore and there has been no default by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y company on the ground that the two have filed a joint bond as per provision of Circular No. 123/95 which is not correct as just filing a joint bond does not mean that the export performance of the two are to be treated as one and same. The two companies are different legal entities having their own profit and loss account and having different liabilities of their own which all have to be conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended provides that the exemption from bank guarantee shall be withdrawn if such export defaults in his the export obligation for 3 consecutive under 10% EPCG scheme. Therefore, if the unit has already defaulted in the export obligation as appears to be the case on account of the respondent company approaching the BIFR requiring it to declare it sick, nothing prevented revenue from withdrawing th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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