EPCG licence concessional duty benefit applied to earlier policy imports despite original 15% endorsement and no fresh endorsement.

Imports made under EPCG licences issued under the 1992-97 policy were held eligible for the revised 10% customs duty rate after later DGFT notifications, because the notifications applied generally to earlier policy licences for imports cleared after their issue. The benefit was not dependent on a fresh endorsement in each licence, and the original reference to 15% could not justify denial of the concessional rate. The record also showed installation of the machines for export production and completion of export obligation, and the DGFT clarification supported entitlement. On that basis, assessment at 15% was rejected as unsustainable.

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Issues: Whether imports made under EPCG licences issued under the 1992-97 policy were entitled to concessional customs duty at 10% in view of later DGFT notifications, despite the licences originally reflecting duty at 15% and without specific endorsement at the revised rate.

Analysis: The notifications were of general application and specifically extended the benefit of the revised concessional rate to licences issued under the earlier policy for imports cleared after the notifications. The lower rate was therefore not dependent on individual licence endorsement, and the authorities could not deny the benefit merely because the original licence mentioned 15%. The record also showed that the machines were installed for export production and the export obligation had been completed, and the DGFT clarification supported the appellant's entitlement.

Conclusion: The imports were entitled to assessment at 10%, and the duty demand at 15% was not legally sustainable. The appellant succeeded.

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