EPCG default regularization under amnesty scheme defeats continuing customs demand after DGFT closes the matter.

Where the competent foreign trade authority closed an EPCG default under an amnesty framework after payment of customs duty and interest, the corresponding customs demand and adverse order could not be sustained. The subsequent closure letter regularized the default and recorded the EPCG authorisation as closed, removing the for continuing the impugned adjudication. On that basis, CESTAT Kolkata set aside the order and granted relief to the assessee, consistent with the final closure of the EPCG matter by the DGFT.

---

---

Issues: Whether the customs duty demand and consequential impugned order could survive after the DGFT closed the EPCG case and regularized the default on payment of duty and interest under the amnesty framework.

Analysis: The case turned on the subsequent closure letter issued by the Foreign Trade Development Officer, which recorded that the EPCG authorization stood closed under the amnesty scheme after payment of customs duty and interest. In view of this administrative closure and regularization, the basis for sustaining the impugned order no longer survived.

Conclusion: The impugned order was set aside and the appeal was allowed in favour of the assessee.

Final Conclusion: The adjudication and demand did not survive after the DGFT regularized the default and closed the EPCG matter, entitling the assessee to consequential relief as per law.

Ratio Decidendi: Where the competent foreign trade authority has finally closed an EPCG default and regularized the case on payment of duty and interest under an amnesty scheme, the corresponding customs adverse order cannot be sustained.

---