CESTAT allowed the appeal and set aside the impugned order that...

CESTAT allowed the appeal and set aside the impugned order that denied SHIS benefit and confirmed a demand of Rs.3,89,82,117 with interest. The Tribunal found that the appellant had surrendered the zero-duty EPCG benefit and paid Rs.57,75,000 (duty and interest) and that DGFT regularized the transaction by issuing duty-paid regularization letters, thereby validating simultaneous availment flexibility under applicable public notice and customs circulars. Applying the ratio of prior CESTAT authority, the Tribunal held the demand unsustainable as the appellant elected to surrender the EPCG benefit and complied with regularization, and accordingly dismissed the revenue demand and allowed the appeal.