The Delhi High Court has quashed the customs demand after Directorate General of Foreign Trade (DGFT) confirmed the export obligation fulfilment under advance authorisation.
The bench of Justice Prathiba M. Singh and Justice Shail Jain has observed that the importer, Anjani Technoplast Ltd was granted an extended period of 133 months to satisfy the export obligation and thereafter the redemption/discharge certificate has also been issued, the Order confirming demand raised for failure to fulfil the export obligation would no longer survive.
The Appellant/assessee firm, Anjani Technoplast Ltd had imported subject goods under Advance Authorisation, subject to fulfilment of export obligations within a period of 36 months in terms of Exemption Notification dated 11th September, 2009.
The Appellant Firm had also executed a bond to the tune of Rs. 5,96,03,154.51 pursuant to the said obligations.
The Appellant had completed the export obligations, partially, of about 47% of the required amount. Further to this failure, a show cause notice was issued to the Appellant Firm on 10th June, 2014 by the Customs Department, raising a demand of Rs. Rs. 5,96,03,154.51, and the same was confirmed by the Order.
The Appellant firm preferred appeal against the said order, however, the same was dismissed due to failure to pay the pre-deposit amount. The Appellant firm then sought relaxation from the Policy Relaxation Committee which extended the period of fulfilment from 36 months to 133 months 7th January, 2020. However, the Appellant firm again failed to fulfil the export obligation and accordingly, deposited the basic Customs duty and interest on 9th September, 2020 and 20th April, 2021. Thereafter, the Appellant firm was issued export obligation discharge certificate dated 9th March, 2022.
The Appellant firm is aggrieved by the demand which is being pressed by the Customs Department despite the issuance of the export obligation discharge certificate.
The court noted that prima facie the Petitioner’s export obligation stood fulfilled once the Directorate General of Foreign Trade had extended the time period for fulfilling the same and thereafter issued the discharge certificate.
The court stated that if any amount has been deposited by the Petitioner for pursuing the appeal before CESTAT, the Petitioner may approach CESTAT for refund of the pre-deposit. The amount of pre-deposit, if any, which was deposited by the Petitioner for filing the appeal shall be refunded within two months.
Case Details
Case Title: M/S Anjani Technoplast Ltd Versus The Principal Commissioner Of Customs
Case No.: CUSAA 178/2022 & CM APPL. 51160/2022
Date: 08.10.2025
Counsel For Petitioner: Anurag Ojha
Counsel For Respondent: Priyadarshi Manish
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