TMI BlogSettlement of cases involving default in export obligation under Advance Licence/EPCG Schemes by Settlement CommissionX X X X Extracts X X X X X X X X Extracts X X X X ..... G Schemes, at the time of import of goods, the licence holder is made aware of his duty liability and to ensure fulfilment of specified export obligation, he gives Bond/BG to DGFT/ Customs. The said Bond/BG clearly lays down that duty concession/ exemption under Advance Licence/EPCG Schemes is being extended to the licence holder provided that he fulfills the specified export obligation and in the event of failure he would be liable to pay differential customs duty plus interest @24% per annum on such duty. In other words, in all such cases, the licence holder is made aware of his liability right in the beginning at the time of import of goods. 2. In terms of Section 127B(1) of the Customs Act, Settlement Commission is empowered to entert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest imposed upon it for making default in export obligation as per policies. 2. The reference has been explained in detail vide p. 1-3 of notings. The record transpires that to promote export of Indian goods, the Government has announced various export promotion schemes from time to time. Under such schemes, Advance Licence Scheme and Export Promotion Capital Goods Scheme are under operation under Advance Licence Scheme. Advance Licence are issued permitting duty free goods of imports. Under EFCG scheme, the import of capital goods is permitted on concessional rate of duty which are required in the manufacture of export product specified in the licence. Under these schemes, the licence holder are under an obligation to fulfil the Export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e disposed of in the manner hereinafter provided. 5. A bare reading of the said section makes it clear that the Settlement Commission can entertain applications for settling the disputes only in those matters where the importers/exporters had not made full and true disclosure of his duty liability before the proper officer. Here in the present matters, parties had already declared the goods imported by them. The importers/exporters were under an obligation to fulfil the export obligation to get the benefit of the scheme. In default thereof, as per bond/bank guarantee, they were under an obligation to pay differential customs duty along with an interest of 24%. As such, it is not a dispute of misdeclaration or non-declaration. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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