EPCG export obligation regularisation upheld where discharge certificate was issued after full compliance within the permitted period.

Full discharge of export obligation within the permitted EPCG period entitled the importer to regularisation under the governing public notice, and the discharge certificate could not be ignored by customs absent misrepresentation, fraud, or another excluded ground. As the export obligation was completed before expiry of the five-year period and the competent authority had issued the discharge certificate, the customs demand for alleged breach of the EPCG notification could not be sustained. The order confirming duty demand was therefore set aside, and consequential relief followed.

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Issues: Whether full discharge of export obligation within the overall licence period entitled the importer to the benefit of the public notice and the discharge certificate, so as to negate the customs demand raised for alleged breach of the EPCG notification.

Analysis: The export obligation was admittedly completed before the expiry of the five-year period. The public notice provided that exports made within the prescribed period were to be deemed regularised for the purpose of the scheme, except in cases involving misrepresentation or fraud. The discharge certificate issued by the competent authority reflected that the obligation stood fulfilled, and the customs authorities could not disregard that certificate merely on the ground that it was said to be inconsistent with the notification when the case did not fall within any excluded category.

Conclusion: The importer was entitled to the benefit of the public notice and the discharge certificate, and the demand of duty could not be sustained.

Final Conclusion: The order confirming duty demand was set aside and the appeal succeeded with consequential relief.

Ratio Decidendi: Where export obligation under an EPCG scheme is fully discharged within the permitted period and the competent authority issues a discharge certificate under a governing public notice, customs authorities cannot refuse to accept that regularisation unless the case involves misrepresentation, fraud, or a similarly excluded ground.

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