TaxTMI 
TaxTMI 
2021 (10) TMI 944
X X X X Extracts X X X X
X X X X Extracts X X X X
....e blocks. The petitioner had applied for and had been granted eight licenses under the Export Promotion Capital Goods Scheme (EPCG Scheme) under the Foreign Trade Policy issued by the Ministry of Commerce, Government of India for import of capital equipments either at nil or concessional rate of customs duty. 2. The benefit granted was in terms of the EPCG Scheme issued under Chapter 5 of the Foreign Trade Policy for the period 2004 to 2009, and is available to an exporter, who satisfies export obligations under Clause 5.4 thereof. Clause 5.14 of the handbook, provides for the consequence of the prescribed export obligations not being achieved and states that the exporter shall then be liable to remit customs duty along with interest, as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to produce various export documents to establish the discharge of export obligation under the scheme, within a stipulated time. 5. Though the petitioner/exporter had, admittedly, submitted some documents, the same were found to be defective and hence defect memos had come to be issued to the exporter, that, according to the respondent, have not been complied with. According to R2, there was a violation of the terms of the Scheme disentitling the petitioner to the benefit claimed. In conclusion, the authority proposes that on account of the failure to submit the required documents, the benefit granted under the Scheme be reversed. The bank guarantee furnished by the petitioner on 14.02.2011 thus came to be invoked by the Assistant Commiss....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd benefits under EPCG Schemes EPCG Committees (c) All other issues Policy Relation Committee (PRC) 8. According to the learned counsel for the petitioner, the non-mention of the EPCG licenses number in the free shipping bills under which the exports were undertaken, constitutes a mere procedural lapse and should not have any bearing upon its claim to the benefits under the EPCG Scheme. 9. Per contra, it is the case of the DGFT that the non-mention of the numbers is not merely a technical lapse, but would tantamount to substantial non-fulfilment of the policy conditions. Unless there had been a proper verification of the documents and all other material that were required to be produced by the petitioner/exporter to substa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hich is to take a decision in regard to whether the petitioner is entitled to its claim under EPCG Scheme. A determination in this regard has unfortunately, not been done thus far. 13. I agree with the respondent that the petitioner is not liable to be granted the benefit under the Scheme for the mere asking. Evidently, the claim of the petitioner that it has complied with the dictates of the scheme must be supported with far more evidences that the mere mention of the license number upon the shipping bill. The entitlement to the EPCG scheme is a matter of verification of the documents as well as all evidences that the petitioner may produce to establish the factum of export and the concerned authority must convince himself of the positi....