BELLCO Industries Vs Commissioner of Customs (Madras High Court)
The petitioner sought a writ to quash the Assistant Commissioner of Customs’ order dated 14.02.2023, which enforced and encashed a bank guarantee related to the import of capital goods under the EPCG Scheme. The petitioner, engaged in manufacturing PET chips and trading aluminium scrap, had imported a bottle crushing machine and accessories under the scheme based on the premise that its products supplied to a merchant exporter were meant for export. As the petitioner failed to fulfil the export obligation, the authority issued a show-cause notice dated 28.02.2023 denying duty exemption, seeking recovery of interest, and proposing penalty, and had earlier enforced the bank guarantee citing non-production of the Export Obligation Discharge Certificate. The petitioner argued that the bank guarantee was encashed during the pendency of the writ petition without interim protection, and that such encashment should be subject to the final adjudication. The petitioner sought a direction that, if successful in the adjudication, the authorities be required to refund the bank guarantee amount. Considering the limited nature of relief requested, the Court did not examine the merits but directed the second respondent to conclude the adjudication pursuant to the show-cause notice and pass appropriate orders. The writ petition was disposed of accordingly, without costs, and connected miscellaneous petitions were closed.
