Case Law Details
Ashok Leyland Limited Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that demand of duty alleging violation of provisions of EPCG licenses on ground of failure to fulfill export obligation unsustainable as EPCG Committee granted extension of export obligation period for two years.
Facts- M/s. Ashok Leyland Nissan Vehicles Ltd. (ALNVL) is a joint venture between M/s Ashok Leyland Ltd. (ALL) and M/s Nissan Motors Co Ltd (NMCL) with a shareholding pattern, in the ratio of 51% : 49% to manufacture Passenger Cars / Light Commercial Vehicles (LCV). M/s. ALNVL was incorporated as a Private Limited Company in May 2008. It does not have any manufacturing facility of its own and was getting vehicles manufactured by M/s. Renault Nissan Automotive India Pvt. Ltd, Chennai (M/s RNAIPL) and M/s ALL, Hosur under a Contract Manufacturing arrangement entered into with the said manufacturers.
Based on intelligence, the Officers visited the premises of M/s ALNVL and other companies. During the course of verification, it was revealed that M/s ALNVL had imported capital goods under the EPCG Scheme at Zero duty / 3% concessional rate of duty and installation certificates had been obtained for installing the said capital goods at nine premises of supporting manufacturers of M/s ALNVL including M/s RNAIPL.
The documents and the customs data showed that M/s. ALNVL had imported Capital goods at zero duty / 3% concessional rate of customs duty under the EPCG scheme under the cover of 65 EPCG Licences.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
