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Issues: (i) Whether the assessee had fulfilled the export obligation under the EPCG scheme by relying on exports from other units or third parties; (ii) whether the Tribunal erred in rejecting the rectification application.
Issue (i): Whether the assessee had fulfilled the export obligation under the EPCG scheme by relying on exports from other units or third parties.
Analysis: The assessee had imported capital goods under Notification No. 160/92-CUS and was required to discharge the stipulated export obligation within the prescribed period. Extension of time was sought without furnishing the required bank guarantee, and therefore no extension was granted. Exports from other units could not be counted in the absence of proof that they were made within the original period. The alleged third-party exports also could not be accepted because the relevant policy condition required the exports to be in the name of the EPCG licence holder.
Conclusion: The assessee failed to establish fulfillment of the export obligation, and the Tribunal's rejection of that contention was .
Issue (ii): Whether the Tribunal erred in rejecting the rectification application.
Analysis: No independent error was found in the Tribunal's main order or in the order dismissing the rectification application. The challenge was confined to rectification, but the Court examined the matter on merits and found no basis to interfere with the Tribunal's view.
Conclusion: The rejection of the rectification application was upheld.
Final Conclusion: The assessee's attempt to treat non-qualifying exports as satisfaction of the export obligation was rejected, and the Tribunal's orders were sustained.
Ratio Decidendi: For fulfillment of an export obligation under the EPCG regime, only exports that satisfy the governing policy conditions and are made within the permitted period or validly extended time can be counted.
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