#EPCG Scheme

CESTAT Chennai holds that export obligations under the EPCG Scheme can be lawfully discharged through third-party shipping bills when the DGFT has explicitly validated the Export Obligation Discharge Certificates, affirming the licensing authority’s primacy over customs’ post-facto scrutiny. This shields compliant exporters from arbitrary penalties and clarifies that DGFT’s administrative approval supersedes rigid customs interpretations.

CESTAT Chennai rules that payment of differential duty and interest under the EPCG Scheme extinguishes liability for confiscation and penalty, provided there is no evidence of diversion or deliberate breach. The ruling clarifies that procedural lapses without mens rea do not warrant punitive action, offering relief to importers facing export obligation defaults.

CESTAT Chennai rules that the absence of physical examination of shipping bills does not invalidate bonafide EPCG scheme conversion claims if other evidence substantiates export eligibility. The decision underscores the flexibility in procedural compliance for exporters under the Risk Management System, provided the claimant demonstrates genuine export activity.