ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 13.08.2025
CESTAT Chennai- Delay in EODC Issuance Beyond Importerβs Control
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has set aside a duty demand against M/s. Mohan Breweries & Distilleries Ltd. under the Export Promotion Capital Goods (EPCG) Scheme. β The case highlights the importance of procedural fairness and the role of government authorities in facilitating compliance with export obligations. β
Background of the Case
M/s. Mohan Breweries & Distilleries Ltd. was issued an EPCG license for importing capital goods at a concessional duty rate under Customs Notification No. 55/2003. The company undertook to fulfill export obligations equivalent to eight times the duty saved within eight years. β However, the Customs Department alleged non-compliance due to the non-submission of the Export Obligation Discharge Certificate (EODC) and issued a demand for Rs. β 8,18,647/- along with applicable interest. β The appellant contended that they had fulfilled their export obligations and had applied for the EODC with the Directorate General of Foreign Trade (DGFT). β Despite this, the Commissioner of Customs (Appeals-II) rejected their request to transfer the case to the call book and upheld the duty demand.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Chennai
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