Case Law Details
Maruti Printers Vs Union of India (Gujarat High Court)
If assessee was given clean chit in SCN proceedings, respective authority might be requested to consider extension of Export Obligation period
Conclusion: If assessee was given a clean chit in the proceedings of the show cause notice, it might request the concerned authority to consider the case of extending the Export Obligation period which had been suspended presently and it would be for the authority to consider such a request at an appropriate time, if the factual circumstances based on the substantive material eventually tilt in favour of assessee.
Held: Assessee imported capital goods such as Ryobi Multi Colour Offset Printing Press (without Blanket washing & without air compressor), having total assessable value of Rs.2,46,96,480/- vide Bill of Entry No.607474 dated 17.09.2008 and the concession of the Customs Duty made available to him was to the tune of Rs.63,09,755/-. He, therefore, was required to export the goods valued at US$ 9,01,164.04 within the period of eight years or further period as could be extended by the Licensing Authority i.e. DGFT. Assessee was unable to fulfill complete Export Obligation and therefore, sought further extension of period for fulfilling the obligation of export. Such a request was made to respondent No.2 and respondent No.2 had extended the time for Export Obligation to 09.09.2018 for the first block period. As such letter was received only a month before the extended period expired, nothing could be done by assessee. He attempted to fulfill this through the third party exports as defined under para 5 and 9.6 of the FTP. He again applied for second extension, which was granted on 10.09.2018 and the time was granted upto 09.09.2020. Assessee had exported goods at US$ 2,54,266.14 (FOB) against the Export Obligation of US$ 9,29,268.71 (FOB) till 09.09.2018 under EPCG licence No.0830002618 dated 09.09.2008 and had not fulfilled the Export Obligation on FOB basis equivalent to six times of the duty saved within stipulated Export Obligation period of 10 days (8+2 extended) from the date of issuance of the EPCG licence, on the ground that it had violated condition mentioned in Para No.(3) of the Notification No.64/2008-CUS dated 09.05.2008, a show cause notice was issued on 05.03.2019. DRI alleged that EOP extension in respect of EPCG Authorisation, which was granted to assessee by respondent No.2 upto 09.09.2020 had been cancelled on account of instructions received from the DRI, Ahmedabad that assessee was indulging in misuse of the EPCG Scheme by fraudulently attempting to show bogus export towards fulfillment of their Export Obligation against EPCG Authorisation. Search operation was carried out on 15.09.2018 at the office cum factory premises of assessee where these suspicious documents had been found and therefore, immediately the original EPCG No.0830002618 had been called for. As the same was not furnished, as directed, there was a suspension of the same on 22.01.2019. Challenge in this petition was to this suspension of amendment sheet No.3, which had extended two years of Export Obligation period with a further request to prospectively grant it for two years. After nearly a month from the non-compliance on 22.01.2019, there had been a suspension of the amendment sheet No.3 dated 27.11.2018. The show cause notice pursuant to the said search operation and subsequent to the suspension of this was already given on 05.03.2019. Any indulgence on the part of the Court at this stage, would amount to entertaining the matter and indulging into the merit at the stage of show cause notice, which was impermissible. It was held that once having extended the period on 27.11.2018, without availing the opportunity, the grant of extension of Export Obligation period, could not be cancelled. However, if there were certain suspicious documents noticed by DRI, the authority concerned, if had chosen to suspend the same and had sought the detail from assessee, no interference was desirable. If assessee was given a clean chit in the proceedings of the show cause notice, it might request the concerned authority to consider the case of extending the Export Obligation period which had been suspended presently and it would be for the authority to consider such a request at an appropriate time, if the factual circumstances based on the substantive material eventually tilt in favour of assessee.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
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