{"id":3152,"date":"2025-03-19T17:24:48","date_gmt":"2025-03-19T11:54:48","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=3152"},"modified":"2025-03-19T17:24:48","modified_gmt":"2025-03-19T11:54:48","slug":"no-penalty-for-default-in-export-obligation-under-epcg-scheme-being-regularized-under-amnesty-scheme-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-penalty-for-default-in-export-obligation-under-epcg-scheme-being-regularized-under-amnesty-scheme-hc","title":{"rendered":"No Penalty for Default in Export Obligation Under EPCG Scheme Being Regularized Under Amnesty Scheme | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000390080\/no-penalty-for-default-in-export-obligation-under-epcg-scheme-being-regularized-under-amnesty-scheme-hc\">Saji Sukumaran Nair Versus Director General of Foreign Trade (2025) 28 Centax 102 (Ker.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Gopinath P.<\/strong>, J.<\/li>\n<li><strong>S\/Shri M. Balagopal, Ms R. Devika<\/strong> &amp; <strong>Ms Anjali Menon<\/strong>, Advs., for the Petitioner.<\/li>\n<li><strong>S\/Shri Achuth Krishnan R. CGC<\/strong> &amp; <strong>R. Harishankar<\/strong>, Advs., for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, having imported a printing machine under the EPCG Scheme at a concessional duty rate, failed to fulfil the prescribed export obligation within the stipulated eight-year period. Pursuant to an adjudication order, customs duty, interest, and a penalty under Section 112(a) of the Customs Act, 1962, were imposed. The petitioner opted for resolution under the Amnesty Scheme (<a href=\"https:\/\/www.centaxonline.com\/search?searchData=DGFT%20Public%20Notice%20No.%202%2F2023&amp;itemType=AP\">DGFT Public Notice No. 2\/2023<\/a> dated 01-04-2023) by remitting the proportionate duty along with 100% interest, following which an Export Obligation Discharge Certificate (EODC) was issued on 28-03-2024. Despite this, a demand for the penalty was raised on 05-04-2024, contending that it remained payable, leading the petitioner to challenge the same before the Hon\u2019ble High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble High Court held that upon full payment under the Amnesty Scheme, the petitioner was deemed not to have availed the EPCG Scheme benefits, thereby regularizing the export obligation default. It concluded that the issuance of the EODC constituted closure of proceedings, precluding the imposition of any further liability. Consequently, the penalty was set aside, reaffirming that settlements effected under the Amnesty Scheme must be regarded as final and conclusive.<\/p>\n<h2><em>List of Departmental Clarification Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=DGFT%20Public%20Notice%20No.%202%2F2023&amp;itemType=AP\">DGFT Public Notice No. 2\/2023<\/a>, dated 1-4-2023 [Para 2]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2064%2F2008-Cus.&amp;itemType=AP\">Notification No. 64\/2008-Cus.<\/a> [Para 1]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Saji Sukumaran Nair Versus Director General of Foreign Trade (2025)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":3182,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-3152","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No Penalty for Default in Export Obligation Under EPCG Scheme Being Regularized Under Amnesty Scheme | HC<\/title>\n<meta name=\"description\" content=\"The High Court ruled that full payment under the Amnesty Scheme regularized the petitioner&#039;s EPCG export obligation default, setting aside the imposed penalty and declaring the settlement final.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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