Exporter's bank guarantee enforced for missing export target. High Court upheld demand for interest and penalty.

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....The petitioner had defaulted in achieving the export target, and the bank guarantee executed by the petitioner was enforced. The High Court upheld the order of the Foreign Trade Development Officer (FTDO) demanding interest and proposing penal action u/s 11(2) of the Foreign Trade (Development and Regulation) Act, 1992, for failure to remit interest within 30 days. The High Court relied on the Supreme Court's judgment in Rexnord Electronics and Controls Limited v. Union of India and Others, which held that evasion of duty is bound to result in payment of duty and interest in terms of the Bond executed by the parties. The writ appeal was allowed, reversing the order of the writ Court.....