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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 ..... 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 by them to the licencing authority shall also execute bond supported by 100% bank guarantee with custom auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued 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 the parent company, their requirement of furnishing bank guarantee should be waived as per the circular. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 considered while exempting and importer from executing the bank guarantee. Further Circular No. 123/95 was no longer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port 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 the exemption from bank guarantee allowed by the Commissioner (Appeals). The bank guarantee was required to be ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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