Valid exit from EOU Scheme and later export obligation discharge bar further duty recovery proceedings.

Further recovery proceedings did not survive where an assessee validly exited the EOU Scheme, migrated to the EPCG Scheme, paid the assessed duty, obtained a no dues certificate, and later fulfilled the export obligation evidenced by the Export Obligation Discharge Certificate. The commentary notes that the duty liability had already been examined at the time of migration and discharged, and subsequent compliance confirmed that there was no continuing basis for recovery. On that footing, the proceedings were held unsustainable and the order dropping them was maintained.

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Issues: Whether proceedings for recovery of duty and consequential liability were sustainable after the unit exited the EOU Scheme, shifted to the EPCG Scheme, paid the assessed duty, obtained a no dues certificate, and later secured the Export Obligation Discharge Certificate.

Analysis: The proceedings had already been examined in the light of the Development Commissioner's permission for one-time exit, the duty liability assessed and discharged at the time of migration from the EOU Scheme to the EPCG Scheme, and the issuance of a no dues certificate. The later fulfillment of export obligation and issuance of the Export Obligation Discharge Certificate further confirmed compliance with the scheme requirements, leaving no surviving basis for duty recovery proceedings.

Conclusion: The proceedings were not sustainable and the challenge by the Revenue failed.

Final Conclusion: The order dropping the proceedings was maintained and the Revenue's appeal did not succeed.

Ratio Decidendi: Where the assessee has validly exited the EOU Scheme, discharged the assessed duty, and subsequently fulfilled the export obligation resulting in issuance of the Export Obligation Discharge Certificate, further recovery proceedings do not survive.

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