ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 04.07.2025
Madras High Court Quashes Customs Demand for EODCs Issued After 17 Years
The Madras High Court has quashed a Bond Enforcement cum Demand Notice issued by the Customs Department after a 17-year delay, citing it as inordinate and unreasonable. The case, filed by M/s Chemplast Sanmar Ltd., involved non-production of Export Obligation Discharge Certificates (EODCs) under the Advance Authorisation Scheme.
Background of the Case
- Petitioner: M/s Chemplast Sanmar Ltd., a star export house and manufacturer of specialty chemicals
- Period of Dispute: Imports made between 1998 and 2000 under 24 Advance Licences issued by DGFT
- Customs Action: Issued show cause cum demand notice in 2019β17 years later, citing non-submission of EODCs
- Petitioner’s Defense:
- Produced EODCs for 13 out of 24 licences
- Cited inability to retrieve remaining EODCs due to passage of time
- Argued that such a long delay is unfair and violates principles of natural justice
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: Madras High Court
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