EPCG SCHEME -RIGHT OF BANKER

[Guest]

WE HAVE IMPORTED SOME MACHINERY UNDER EPCG SCHEME, BUT COULD NOT COMPLY WITH EXPORT OBLIGATION. NOW OUR BANKER WOULD LIKE TO SELL THOSE MACHINERY TO RECOVER OUR DUES. WE ALSO WANT TO COME OUT OF THE LIABILITIES. WHETHER THE PURCHASER OF MACHINERY IS LIABLE TO PAY THE CUSTOM DUTY? PLEASE REPLY. (BANK IS SELLING IT UNDER SARFEASI ACT.)

AI Summary

Dispute Over Machinery Sale Under SARFAESI Act: Must Buyer Pay Customs Duty and Interest? Consult Authorities. A company imported machinery under the EPCG scheme but failed to meet the export obligations. The bank intends to sell the machinery under the SARFAESI Act to recover dues, raising the question of whether the purchaser must pay customs duty. One respondent advised consulting with relevant authorities to determine who holds the first charge on the machinery, while another confirmed that the purchaser would need to pay customs and other duties with interest.