EPCG export obligation re-assessment required before denying discharge certificate and customs action was set aside.

Re-fixation of export performance under an EPCG licence required a fresh examination where the petitioner claimed the annual average had been calculated using irrelevant exports and that actual exports exceeded the export obligation. The Court held that the competent authorities had to reassess the export records, the basis of the average export figure, and any entitlement to amnesty or similar relief before determining the discharge of the export obligation. As that exercise had not been completed, the customs order could not be sustained and was set aside. The matter was remitted for reconsideration and a fresh decision on the petitioner's entitlement to an Export Obligation Discharge Certificate.

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Issues: Whether the petitioner's request for re-fixation of the annual average export performance and consequent grant of Export Obligation Discharge Certificate required fresh consideration on the basis of the actual export figures, and whether the customs order passed without such reassessment could be set aside and remitted.

Analysis: The EPCG licence was issued on the basis of the petitioner's past export figures, but the petitioner asserted that the average had been fixed on mistaken inclusion of exports not relevant to the licensed activity. The material placed before the Court showed that the overall export obligation under the licence was to be worked out against the value of imported capital goods and that the petitioner claimed exports exceeding the total obligation. The Court found that this claim required a proper examination by the competent authorities, including consideration of the petitioner's request, the export records, and any entitlement to amnesty or similar reliefs. In view of the need for such reassessment, the impugned customs order could not be sustained without a fresh enquiry.

Conclusion: The matter was directed to be reconsidered afresh by the competent authorities, and the impugned customs order was set aside with a remand for fresh decision on the petitioner's export obligation and entitlement to relief.

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