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2014 (8) TMI 733 - DELHI HIGH COURTViolation against EPCG License - Export obligation - The petitioner had imported cameras and other equipment under the EPCG licence and was obliged to export “Video Software” equal to the CIF value of the capital goods imported by the petitioner - Recovery of customs duty with interest - forfeiture of Bank Guarantee and action under the Foreign Trade (Development and Regulation) Act, 1992 - Held that:- The export obligations were not conditional upon any project or any venture that was planned by the petitioner at the material time. - failure of the venture, that the petitioner intended to pursue in conjunction with Doordarshan would not in any manner absolve the petitioner from complying with its export obligation. According to the petitioner, it invested in equipment and infrastructure in anticipation of producing content for a business channel – DD3 proposed to be aired by Doordarshan at the material time. And, Doordarshan abandoning the said channel severely affected the financial health of the petitioner and resulted in the large investments made by the petitioner remaining non-productive. Apparently, abandoning the DD3 channel by Doordarshan, put paid to the plans of the petitioner to export programme capsules that were to be produced for airing on the said channel. Consequently, the petitioner suffered business losses and could not discharge it is export obligations. The losses or profits made by an entrepreneur or its business plans going awry, cannot possibly be a ground that entitles a businessman to avail duty exemption/concession. In the normal course, the petitioner would be required to pay full duty on the equipment imported by it. Under the EPCG scheme the petitioner was exempt from paying full duty only on the condition that it would employ its assets to earn foreign exchange and export video software to the extent of the CIF value of its imports. This condition, admittedly, not having been met, the petitioner would be liable to pay the requisite duty and other levies. - Decided against assessee.
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