Bank Guarantee Encashed for Non-Fulfilment of EPCG Conditions; Court Orders Adjudication

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 ...