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2021 (8) TMI 1066 - CESTAT NEW DELHIEPCG Scheme - failure to fulfill the conditions stipulated in the license - failure to submit the export obligation discharge certificate EODC issued by the licensing authority - HELD THAT:- Once EODC had been issued undisputedly appellants have fulfilled the export obligation arising out of the license issued under Notification No.97/2004 well before the stipulated time (in year 2011 itself). Undisputedly the discharge certificate thereof was duly applied with however, could not be issued within 30 days of fulfilling the export obligation accordingly could not be produced within the limit prescribed in the Notification. Delay in issuance of said certificate is also not on account of appellant’s fault. Fact still remains is that since, the only ground on which the demand was confirmed is non-submission of EODC despite that the same was submitted by the appellant prior the order under challenge was passed showing that he has fulfilled the export obligation within the time. In the present case, it is also not in dispute that the petitioner has fulfilled the export obligation substantially and wherever there is little short fall, the petitioner has sought regularization and issuance of EODC by offering to pay customs duty proportionately to that extent. The fact that there is delay in regularization and issuance of EODC by the DGFT, is very much apparent and also it has not been disputed by the department, the customs authorities cannot penalize the petitioner by resorting to coercive action. The appellant has fulfilled the export obligation much prior the expiry of the time under the license issued to him. He also has produced the EODC before Commissioner (Appeals) proving that he has fulfilled the export obligation. The order ignoring the said EOC with an intent to confirm the recovery of duty waiver sought by the appellant at the time of imports is nothing but a forcible recovery. The law has been settled that once EODC is issued, the Department cannot recover the amount of duty waiver - the appellant otherwise has duly fulfilled the Export Obligations, that too, well in time. The delay in issuance of EODC was also not on account of appellant’s fault and the same was duly communicated in writing to the Department, even to the original adjudicating authority. The certificate as such was produced before Commissioner (Appeals). Appeal allowed.
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