Case Law Details
YSI Automotive India Pvt. Ltd. Vs Commissioner of Customs (Madras High Court)
EPCG scheme Non-mentioning of authorisation in case of third-party exports is not fatal: The Madras High Court has held that the requirement of mentioning EPCG licence of the manufacturer in the shipping bill, in case of third-party exports, though mandatory as per Para 5.7.1 of the Foreign Trade Policy, factum of export is capable of being satisfied constructively as well. Observing that such non-mention is not fatal to the claim of concessional rate of duty, the High Court also noted that the provisions of Section 149 of the Customs Act, 1962 provides a forum to the assessee-petitioner to establish this by way of contemporaneous records. The Court noted that this could be done by the assessee by any number of methods, including confirmations from third party, correspondences and other documents at its disposal, among others.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The challenge in W.P.No.9046 of 2020 is to an order-in-original dated 16.01.2020 passed by the Commissioner of Customs rejecting the applications filed by the petitioner seeking amendment of its shipping bills dated 03.09.2019.
2. The petitioner had obtained licenses under the Export Promotion Capital Goods (EPCG) Scheme in terms of the Foreign Trade Policy 2009-14 (FTP). This entitled the petitioner to import capital goods at a concessional rate of duty with a condition and obligation attached thereto to export eight times of the duty saved under each license. Admittedly, the export obligation was not complied with within the stipulated period and an extension was sought in terms of the FTP. An extension was granted for a period of two years.
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