EPCG export obligation extension allowed subject to fresh bank guarantees, while the wider dispute remained open

Relief under the EPCG Scheme was confined to permitting the petitioner to exercise the option for extension of the export obligation period under para 5.11 of the Handbook of Procedure, 2009-14. That course was accepted subject to furnishing fresh bank guarantees in the amount demanded by Customs and keeping them alive until the Export Obligation Discharge Certificate was obtained. The larger dispute arising from the impugned communications and the bank guarantee enforcement was left open and was not adjudicated.

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Issues: Whether the petition could be disposed of by permitting the petitioner to exercise the option for extension of export obligation period under para 5.11 of the Handbook of Procedure, 2009-14, while requiring fresh bank guarantees and keeping the larger controversy open.

Analysis: The petitioner sought relief against the impugned communications arising out of the EPCG Scheme and the demand enforced through bank guarantees. During the hearing, the petitioner elected to proceed under the option indicated by the foreign trade authorities for extension of the export obligation period under para 5.11 of the Handbook of Procedure, 2009-14. In view of that limited request, the Court accepted the undertaking to furnish fresh bank guarantees in the amount demanded by Customs and to keep them alive until the Export Obligation Discharge Certificate was obtained. The Court also clarified that the larger controversy was not examined and was kept open.

Conclusion: The petitioner was permitted to avail the option for extension under para 5.11 of the Handbook of Procedure, 2009-14, subject to furnishing and maintaining fresh bank guarantees, and the writ petition was disposed of without adjudicating the wider disputes.

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