TaxTMI 
TaxTMI 
2020 (2) TMI 1453
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....19 (366) E.L.T. 203 (Del.)]. Hence, the appellant preferred the present appeal. In the writ petition, the order passed by the Director General of Foreign Trades (hereinafter referred to as 'DGFT') dated 13th December, 2018 passed in a review application under Section 16 of the Foreign Trade (Development and Regulation) Act, 1992 (hereinafter "FTDR") was under challenge. 2. The appellant was a license holder under the Export Promotion and Capital Goods, EPCG, scheme on 27th January, 2005, for the import of capital goods, and their subsequent manufacture. The appellant was authorized, in terms of the saved import duty fixed at a value of Rs. 2,17,317.25/-, with a corresponding export obligation of FOB Rs. 17,38,538/-. The obligation w....
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....ry, 2014, in pursuance of the aforesaid Show Cause Notice, under Sections 14 and 11(2) of the FTDR, asking to show cause as to why fiscal penalty must not be imposed for violations of the conditions of the license by importing the capital goods at concessional rate of Customs Duty in violation of Exim policy. 9. The appellant responded on 29th January, 2014, stating that they had fulfilled the export obligation more than necessary as per the EPCG license, and submitted the eight documents in support of this. 10. The office of the Additional DGFT, responded to the aforesaid communication dated 29th January, 2014, on 26th February, 2014, stating that since the supply of goods appears to be a SEZ unit, the appellant is required....
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....ved thereagainst, the appellant filed an appeal before the Additional DGFT under Section 15(1) of the FTDR, making his case that the supply of goods through a recognized courier agency ought be treated as transshipment of goods, and, thus, no further BoE was required to be submitted, apart from claiming that Nokia had issued Form 'I', covering the invoices raised by it and the same must be accepted as requisite document to further the claim of the petitioners export obligation. 16. The appeal, was however, rejected by the Additional DGFT vide its order dated 5th March, 2018. Moreover, the appellant preferred a review against such a rejection by the Additional DGFT, which was passed by the DGFT, which was rejected vide the DGFT's ord....
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....e EPCG scheme is extracted hereinbelow : "(b) For Deemed Exports : (i) Copy of ARO/Back to back Inland letter of Credit or Advance Authorisation of Immediate Supplies Or Supply invoices or ARE-3 duly certified by the Bond Officer of EOU concerned showing that the supplies have been received; (ii) The Authorisation holder shall also furnish the evidence of having received the payment through normal banking channel in the form given in the Appendix-22B or a self-certified copy of payment certificate issued by the Project authority concern....
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....ld be relevant to refer to the conditions on which EPCG authorisation was issued to Holoflex, especially clause 10 thereof, is relevant and set out below : "10. This licence will be operative as per provisions of the exim policy and Hand Book of Procedures 2004-2009 or any other law/provision time being in force" It is therefore, apparent from the above, that the appellant was required to follow the Handbook of Procedures. Therefore, since the paragraph 5.13(b), of the Hand Book of Procedures governs the procedure for the fulfilment of the export obligations under of Chapter 5 of the EPCG scheme, the supply to the Nokia SEZ, shall be governed by para 5.13(b), as extracted hereinbefore supra. 26. Therefore, in light ....