Customs Duty Demand on Import of Capital Goods without verifying EODC : CESTAT Directs Re-adjudication [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed the adjudicating authority for re-adjudication on the customs duty demand on the import of capital goods without verifying the Export Obligation Discharge Certificate (EODC). 

Solar Soles Private Limited, the appellant assessee appealed against the order passed by the adjudicating authority to confirm the demand for the total Customs duty of Rs.85,27,491/- for non-fulfillment of Export Obligation with further proposals to charge applicable interest and penalty under Section 112(a) of the Customs Act, 1962. 

Sethu Prabakaran R, the counsel for the assessee contended that the assessee had fulfilled the Export Obligation in respect of all the four Export Promotion Capital Goods (EPCG) Licences mentioned. 

Also submitted that the assessee had submitted all the required applications along with documents for issuance of discharge/redemption certificate, but there was no reply from the authority in respect of the same. 

R. Rajaraman, the counsel for the department relied on the decisions made by the lower authorities and contended that since the importer had obtained EODC it was required to be verified by the adjudicating authority. 

The Bench observed that the adjudicating authority had to verify the EODC for the limited purpose of verification and thereafter grant such benefits to the assessee, as the assessee may be entitled to, in law, consequent to the production of EODC. 

The two-member bench comprising P Dinesh (Judicial) and Ajit Kumar (Technical) remanded the matter back to the adjudicating authority to verify the EODC obtained by the assessee. 

To Read the full text of the Order CLICK HERE

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