EPCG Export Failure due to SARFAESI Auction: CESTAT waives Interest & Penalty, upheld duty demand

Rajdarbar Heritage Venture Limited Vs Additional Director General (CESTAT Delhi) Conclusion: Where an EPCG licence holder becomes incapable of fulfilling export obligations due to unavoidable circumstances such as SARFAESI auction of imported assets, levy of interest and penalty cannot be sustained, particularly when customs duty has already been recovered through encashment of bank guarantees. Tribunal upheld only the customs duty demand while setting aside confiscation, interest and penalty. Held: Assessee-company was engaged in hotel and hospitality business, obtained 27 EPCG authorisations...