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2010 (10) TMI 896 - HC - CustomsEPCG Scheme - import of second-hand machinery - petitioner’s application for grant of licence under EPCG scheme rejected - EPCG licence on provisional basis issued and called for the petitioner to submit an undertaking to the effect that, in the event of the authority at the Headquarters/1st respondent not concurring with the decision to allow import of second-hand capital goods of Indian origin under EPCG Scheme, the petitioner would pay 100% of duty saved amount together with 15% interest thereon from the date of import of capital goods - petitioner willingly submitted an undertaking to that effect - higher authorities viz., Respondent Nos. 1 and 2, declined for grant of EPCG licence as it goes contra to the policy circulars of the Government and the clarifications contained therein - letter, requesting the petitioner to pay duty with 15% interest immediately to the customs authorities and to furnish the copy of challan – Held that:- petitioner-firm ought to have instructed the Bank to allow the Customs Department to invoke the bank guarantee. The petitioner, instead of doing so, seemingly with a sole view to evade the duty payable to the Exchequer, initiated the present proceedings invoking the writ jurisdiction. This Court does not deem it just and proper to go into the validity or otherwise of the impugned order for the mere reason that the petitioner-firm cannot even challenge the same as they themselves satisfied over grant of a provisional EPCG Licence with a clear written undertaking on their part in a stamp paper as mentioned above and subsequently enjoyed the benefits of the provisional EPCG licence by clearing the imported goods. Under such circumstances, the Department is perfectly justified in invoking the Bank Guarantee so as to recover the customs duty due from the petitioner after rejection of their request by the Headquarters, Writ Petition is dismissed as devoid of merits
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