9911796707
TMI Blog2003 (2) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... tal Goods (E.P.C.G.) Scheme. The Scheme envisaged exemption from customs duty on the imported goods, plants and equipment, etc., subject to the conditions incorporated in Exemption Notification No. 111/95-Cus., dated 5th June, 1995 which was issued under Section 25(1) of the Customs Act, 1962. The appellant in the appeals arising out of S.L.P. (C) Nos. 14657-14658 of 2002, M/s. Daewoo Motors India Limited, availed the Scheme which, inter alia, provided that upon importing plants and equipment, it should fulfil the export obligation equivalent to six times the CIF value of the goods which had been imported on FOB basis, or alternatively four times the CIF value of the goods imported on net foreign exchange basis within a period of eight mont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erned, this court granted stay of encashment of bank guarantee but in respect of the licences having CIF value of less than Rupees one hundred crore, the first respondent was at liberty to encash the bank guarantee. In the present appeals, we are concerned only with the licences where the CIF value exceeds Rupees one hundred crore. 6.Mr. S.K. Chowdhary, learned Counsel appearing for the appellant-company contends that in respect of the licences of CIF value exceeding Rupees one hundred crores, the period for compliance of the export obligation was extended and as such the first respondent cannot be permitted to encash the bank guarantee when ample time is available to the appellant-company to discharge the export obligation. It was pleaded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fraud. The clause in the bank guarantee, on which Mr. Chidambaram relies, reads as under : "We, Times Bank Ltd., PTI Building, Parliament Street, New Delhi - 110 001 do hereby unconditionally and irrevocably agree to pay the President of India on Demand without any demur or protest the amount due and payable under the above-said bond not exceeding Rs. 4,80,00,000/- (Rupees Four crore eighty lac only) by way of loss or damage caused or suffered by the President of India by reason of non-fulfilment of the export obligation under the above-said Notification or by reason of any breach of any of the terms and conditions of the above-said bond By M/s. Daewoo Motors India Limited." 11.He has emphasised on the words "by reason of non-fulfilment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sive as regards the amount due and payable by us under these presents as out of liability under these presents are absolute and unequivocal;" 13.From a perusal of the above clauses, it is abundantly clear that the bank guarantee furnished by the bank is an unconditional and absolute bank guarantee. The bank has rendered itself liable to pay the cash on demand by the President of India "notwithstanding any dispute raised by M/s. Daewoo Motors India Limited in any proceeding before any court or Tribunal". It is worth noticing that the clause in the bank guarantee specifically provides that the demand made by the President of India shall be conclusive as regards the amount due and payable by the bank under this guarantee and the liability und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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