Finality of export obligation discharge certificate bars customs from reopening differential duty without revised certification or proven discrepancy

An export obligation discharge certificate under the Export Promotion Capital Goods scheme is meant to bring finality to compliance with export obligation. Once the competent authority has certified fulfilment, customs cannot reopen duty liability on its own calculation of an alleged shortfall. Recovery of differential duty is sustainable only if a discrepancy is established through investigation and the certificate is revised, or the matter is referred back for revision by the competent authority. On the stated facts, the differential duty demand was held unsustainable and the order was set aside in favour of the assessee.

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Issues: Whether customs authorities could recover differential duty for alleged shortfall in export obligation after the competent authority had issued an export obligation discharge certificate.

Analysis: The export obligation discharge certificate is intended to confer finality on fulfilment of the export obligation under the Export Promotion Capital Goods scheme. Once the competent authority has certified compliance, the duty liability cannot be reopened by customs on its own computation of shortfall, unless some discrepancy is ed through investigation and the certificate is revised or referred back for revision by the competent authority.

Conclusion: The recovery of differential duty was not sustainable, and the impugned order was set aside in favour of the assessee.

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