High Court overturns Orders on EPCG Scheme breach, allows bank guarantee release

The High Court set aside the Order-in-Original and Order-in-Appeal related to the breach of conditions under the EPCG Scheme, allowing for the release of the bank guarantee. The petitioner, despite initially failing to produce the required export obligation discharge certificate, later obtained them. The Tribunal had dismissed the appeal due to withdrawal without reserving liberty to reagitate. The High Court emphasized the petitioner's possession of valid certificates and directed the first respondent to evaluate them for the bank guarantee release within six weeks. The decision was not to be considered a precedent for future cases, and no costs were imposed.

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Issues:
Challenge to Order-in-Original and Order-in-Appeal for breach of EPCG Scheme conditions, release of bank guarantee, withdrawal of appeal before Tribunal without liberty to reagitate the matter.

Analysis:
The petitioner sought to quash the Order-in-Original and Order-in-Appeal related to the breach of conditions under the Export Promotion Capital Goods Scheme (EPCG Scheme) and requested the release of a bank guarantee. The petitioner failed to produce the required export obligation discharge certificate within the stipulated time, leading to a demand for duty payment. Despite later obtaining the certificates, the Tribunal dismissed the appeal due to withdrawal without reserving liberty to reagitate the matter. The High Court noted that the petitioner had the necessary certificates issued by the Competent Authority and should be considered for relief. The Court emphasized that the delay's cause was not under examination at that stage, but the possession of valid certificates by the petitioner warranted due consideration. The Court set aside the impugned orders, remitting the matter back to the first respondent to evaluate the certificates and proceed with the bank guarantee release if found valid, within six weeks of the petitioner's approach with the original certificate. The Court clarified that this decision should not serve as a precedent for future cases and closed the related applications without imposing costs.

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