DGFT Minutes

MINUTES OF EPCG COMMITTEE MEETING HELD UNDER THE CHAIRMANSHIP OF SHRI JAIKANT SINGH, ADDITIONAL DIRECTOR GENERAL OF FOREIGN TRADE AT 1430 Hours ON 19.06.2015

Following officers attended the meeting:

a. Shri Akash Taneja, Joint Director General of Foreign Trade, DGFT b. Shri D.K. Gupta, Director (DBK), Department of Revenue c. Shri V.K. Kohli, Director, O/o Textile Commissioner d. Shri K.K. Tiwari, Industrial Advisor, D/o Heavy Industry

II. Minutes of the last Meeting held on 25.05.2015 were confirmed.

III. The Committee deliberated upon all the cases and following decisions were taken:

Sl. No. Firm’s Name and Numbers EPCG Authorisati on No.
Subject Decision of the Committee 1. M/s Crompton Greaves Limited, New Delhi

01/36/218/177/A M-15/EPCG-I 0530143262 dated 12.03.2007
0530143893 dated 13.06.2007
0530144142 dated 18.07.2007
0530144414 dated 23.08.2007
0530144623 dated 21.09.2007
0530146946 dated 21.08.2008 Extension of block- wise EO
The Committee noted that the party has submitted the copies of CA certificates on Appendix-5C giving details of exports made by them in respect of subject authorizations. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block-wise EO, as the party could not apply to RA within the prescribed time period.

o DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.2 of HBP v1 2009- 14/ Para 5.14 (c) of HBP 2015-20.

This has the approval of DG. 2. M/s Hindustan Syringes & Medical Devices Limited

01/36/218/225/A M-14/EPCG-I 0530139025 dated 05.07.2005 Re-fixation of average EO The Committee noted that the case was deferred in the meeting dated 19.9.2014 for further examination after obtaining details of capital goods and items of exports. The case was again taken up in the meeting held on 25.5.2015 but was deferred. The Committee observed that the firm had obtained EPCG authorization for import of capital goods viz. grinding machine, honing machine, injection moulding machine and screw compressor for manufacture of export products viz. infusion sets, scalp vein sets and blood collection sets. The party was required to fulfil specific EO of Rs. 7.67 crores and maintain average EO of Rs. 2.78 crores. The Committee noted that the party had approached RA to refix its average EO to Rs. 1.04 crores in terms of para 5.7.4 of HBP v1 2009-14 for deleting exports made by them against unredeemed EPCG authorizations.

hat the party had approached RA to refix its average EO to Rs. 1.04 crores in terms of para 5.7.4 of HBP v1 2009-14 for deleting exports made by them against unredeemed EPCG authorizations. However RA asked them for details of all exports made by them under 4 digit heading of ITC (HS) 9018 and their EO was refixed at Rs. 14.18 crores.

The party has represented that ITC (HS) 9018 is a broad heading having dissimilar items and their average EO should be refixed based on export of same and similar items only as per para 5.5. (b) of FTP 2009-14 since all items under ITC (HS) 9018 are not same and similar. The Committee observed that the technical authority viz. DIPP in its comments has clarified that ITS (HS) 9018 is a broad heading consisting of instruments and appliances used in medical, surgical, dental and veterinary sciences etc. and the function of each type of instruments/appliances is different from each other. DIPP has further clarified that the capital goods imported by the firm are general purpose and capable of producing the products being exported by the firm.

The Committee decided that RA should take into account past exports of only same and similar items as originally submitted by the party and refix average export obligation after deleting the past exports made by the party against unredeemed EPCG authorizations.

of only same and similar items as originally submitted by the party and refix average export obligation after deleting the past exports made by the party against unredeemed EPCG authorizations. 3. M/s Inox Wind Limited, Noida

01/36/218/220/A M-15/EPCG-I 2230001282 dated 28.01.2010 Extension of block- wise EO The Committee noted that the case was placed before the EPCG Committee in its meeting held on 25.05.2015 and was deferred as representative of DoR requested for time to call for a report from Customs in the matter. The Committee was informed that DRI, Kolkata has booked a case against M/s Inox Wind Ltd., for non- fulfilment of Export Obligation and vide letter dated 11.06.2015 have requested not to allow extension and/or addition of additional export products to the party. The Committee observed that the export obligation period of the authorization is valid upto 27.1.2016 and party has not been able to fulfil blockwise EO. The Committee took into account the submission made by the representative of the party in personal hearing that due to recession in the international market they could not fulfil blockwise EO but now have sufficient export orders to fulfil their EO within the prescribed EO period.

The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA within the prescribed time period.

for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para 5.14

(c) of HBP 2015-20. This will however not eliminate the factum nor dilute the liability of the investigations initiated by DRI against the party.

M/s Jindal Poly Films Limited, New Delhi

01/36/218/72/AM- 13/EPCG-I 0530133359 dated 27.09.2002 0530136565 dated 14.07.2004
0530140674 dated 20.03.2006 Clubbing of 3 EPCG authorizations and change the EOP to 12 years against EPCG Authorization No. 0530133359 dated 27.09.2002 as the CIF value of the Authorization was more than 100 Crore. The Committee noted that a show cause notice from Customs was issued to party. The Committee observed that the case was placed before the EPCG Committee in its meeting held on 27.04.2015 wherein representative of the DoR stated they need to call for a report from Customs in the matter.

Representative of DoR stated that the report from Customs is still awaited. The Committee, therefore, decided to defer the case. DOR was requested to send their comments before the next meeting of EPCG Committee. 5. M/s Hotel Southson Pvt. Ltd., Salem

01/36/218/207/A M-15/EPCG-I 3230008236 dated 01.11.2006 Condonation of block-wise EO and extension in EOP for 2 years The Committee noted that the party has fulfilled 83.97% EO during the EOP. relaxation under Para 2.58 of FTP 2015-20 to allow; a. condonation from condition of fulfillment of block-wise EO, as the party could not apply to RA within the prescribed time period.

EOP. relaxation under Para 2.58 of FTP 2015-20 to allow; a. condonation from condition of fulfillment of block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para

5.14 (c) of HBP 2015-20; b. extension in EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11(a) of HBP Vol. I. 2009-14/

Para 5.17 (b) of HBP 2015-20, as the

party could not apply to RA within the prescribed time period.

M/s Hemalatha Mills Pvt. Ltd., Tirupur

01/36/218/124/A M-15/EPCG-I 3230001713 dated 19.03.2003 Acceptance of documents towards the fulfillment of EO by condoning the procedural lapse of non-mentioning EPCG authorization no. and date on the ARE-3. The Committee took into account the submission of the party that they have completed their EO within the EO period by way of Deemed Export to 100% EOU Units but could not mention the EPCG authorization no. and date on the ARE-3 Forms.

relaxation under Para 2.58 of FTP 2015-20 to allow condonation of the procedural lapse of non-mentioning EPCG authorization no. and date on the ARE-3 subject to verification of ARE-3 forms by the concerned Jurisdictional Central Excise Authority that the supply of goods have actually been made to 100% EOU units and certification by Jurisdictional Central Excise Authority of the recipient unit.

rned Jurisdictional Central Excise Authority that the supply of goods have actually been made to 100% EOU units and certification by Jurisdictional Central Excise Authority of the recipient unit.

M/s Essar Steel India Limited, Mumbai

01/36/218/17/AM- 16/EPCG-I 0330019642 dated 28.03.2008 0330020230 dated 05.06.2008
0330020859 dated 04.08.2008
0330021155 dated 01.09.2008
0330021505 dated 03.10.2008 Condonation of delay in installation of capital goods submission of the party that they had obtained the installation certificate from Central Excise Authority but there was a delay in installation of the capital goods beyond 18 months due to stop work order issued by O/o Collector, Keonjhar in August, 2011 for violation of Forest Act
and Executive Engineer, Keonjhar in January, 2012 directed shifting of slurry pipe lines lying along the road. The Committee noted that the party has completed their EO within time period.

The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in installation of capital goods subject to payment of composition fee of Rs.5000/-.

M/s Himalaya International Limited, Delhi 18/141/AM-15/P-5 0530154643 dated 28.01.2011 Clarification regarding average EO exemption and decided to defer it in order to obtain comments from the Ministry of Food Processing Industries in the matter.

5 0530154643 dated 28.01.2011 Clarification regarding average EO exemption and decided to defer it in order to obtain comments from the Ministry of Food Processing Industries in the matter.
9. M/s Minda Corporation Limited, Noida

01/37/218/163/A M-15/EPCG-II 0530139571 dated 19.09.2005 0530144853 dated 24.10.2007 0530142394 dated 15.11.2006 Transfer of ownership of capital goods on the basis of Slum Sale Agreement.
The Committee observed that the said authorizations were issued to M/s Minda S.M. Technocast Ltd. and the capital goods were transferred to M/s Minda Corporation Limited on slump sale basis.
submissions that vide their agreement dated 28.03.2009 between M/s Minda S.M. Technocast Ltd., (authorization holder) and M/s Minda Corporation Ltd.

had undertaken/acquired all the assets and liability including statutory liability and obligation of M/s Minda SM Technocast Limited pertaining to the unit located at “GAT No.307, Hissa No.1, 2&3 Opposite Super Auto, Nanekwaid, Chaken, Talhed, Pune – 410 501. The capital goods are installed in the same premises even after the transfer of business.

The Committee, deliberated upon the case relaxation under Para 2.58 of FTP 2015-20 to allow transfer of ownership of Capital Goods on the basis of slump sale

after the transfer of business.

The Committee, deliberated upon the case relaxation under Para 2.58 of FTP 2015-20 to allow transfer of ownership of Capital Goods on the basis of slump sale

agreement subject to:

i) Submission of fresh BG/LUT Bond. ii) All the terms and conditions of the EPCG authorizations including maintenance of average EO and Specific EO will remain the same. iii) In case the transferee company exports same and similar item the transferee company would maintain average EO in addition to average EO under these licenses.

M/s Concast Steel & Power Limited, Kolkata

01/36/218/178/A M-15/EPCG-I 0230002601 dated 06.09.2007
0230002713 dated 24.10.2007
0230005778 dated 30.09.2010
0230005779 dated 30.09.2010
0230005780 dated 30.09.2010 Extension of block- wise EO and addition of alternate product.
The representative of the party appeared before the Committee and informed that they have exported “Pig Iron”. However, representative of DOR informed that the party has not exported “Pig Iron”.

and decided to defer it in order to obtain proof of export product exported by the party.

M/s Modern Automotives Limited, Chandigarh

18/104/AM-15/P-5 0530142016 dated 22.09.2006 Condonation of block-wise EO and extension in EOP for 2 years The Committee noted that the party has fulfilled 27% EO during the original EOP and already submitted 2% composition fee for unfulfilled EO.

n of block-wise EO and extension in EOP for 2 years The Committee noted that the party has fulfilled 27% EO during the original EOP and already submitted 2% composition fee for unfulfilled EO. The Committee took into account the submission of the party that they have sufficient purchase orders and confident to fulfil the EO within extended time.

The Committee, deliberated upon the case relaxation under Para 2.58 of FTP 2015-20 to allow:

(a) condonation from condition of fulfillment of block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.2 of HBP v1 2009-14/ Para 5.14 (c) of HBP 2015- 20; and

(b) extension in EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11(a)

unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11(a)

of HBP Vol. I.2009-14/ Para 5.17 (b) of HBP 2015-20, as the party could not apply to RA within the prescribed time period.

M/s Koch Chemical Technology Group India Pvt. Ltd., Gujarat

01/36/218/271/A M-14/EPCG-I 3430000991 dated 18.01.2007 Condonation of delay in obtaining installation certificate issued by central excise authority submission of the party that they have obtained the installation certificate issued by Chartered Engineer dated 24.06.2010 certifying that the equipment’s were installed on 25.02.2007 within period of 6 months. Thereafter, Excise Authority had visited their factory for physical and documentary verification and accordingly they had issued installation certificate which is beyond the 18 months prescribed period. The Committee noted that the party has completed EO within time period.

relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in obtaining installation certificate from central excise subject to payment of composition fee of Rs.5000/-.

M/s Arani Agro Oil Industries Ltd., Hyderabad

01/36/218/420/A M-14/EPCG-I 0930002931 dated 21.02.2007 0930001855 dated 22.11.2005 Consideration of excess exports made against EPCG authorization No. 0930002931 dated 21.02.2007 for discharge of EO of another EPCG authorization No.

007 0930001855 dated 22.11.2005 Consideration of excess exports made against EPCG authorization No. 0930002931 dated 21.02.2007 for discharge of EO of another EPCG authorization No. 0930001855 dated 22.11.2005 submission of the party that against EPCG Authorization No. 093002931 dated 21.02.2007 the specific EO was US$ 2,22,288 and they discharged the same vide shipping bill No.2845493 dated 21.11.2007 and 2961323 dated 14.03.2008. Even after completion of the Specific EO they have mentioned the same authorization No. i.e. 0930002931 dated 21.02.2007 instead of mentioning the relevant EPCG authorization No. in the S/Bills.

and decided to allow counting of excess exports made against EPCG Authorization No. 0930002931 dated 21.02.2007 for discharge of EO for another EPCG Authorization No.0930001855 dated 22.11.2005 with following conditions:

a. The counting of excess exports made against Authorization No. 0930002931 dated 21.02.2007 for fulfilment of EO of other EPCG authorization No. 0930001855 dated 22.11.2005 will be subject to the condition that the exports made are within EOP of EPCG authorizations.
b. There is no double counting of shipping Bills.
c. All shipping bills are for direct exports and not third party exports and are not free shipping bills.

ithin EOP of EPCG authorizations.
b. There is no double counting of shipping Bills.
c. All shipping bills are for direct exports and not third party exports and are not free shipping bills.

d. A composition fee of Rs. 200 per shipping bill would be charged for such shipping bills which are being considered for fulfilment of EO in respect of other EPCG authorization. Give number 14. M/s Associated Broadcasting Company Pvt. Ltd., Hyderabad

01/36/218/24/AM- 16/EPCG-I 0930000757 dated 11.11.2003 Extension of block- wise EO The Committee noted that the party has fulfilled 100% EO during the EOP. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.2 of HBP v1 2009- 14/ Para 5.14 (c) of HBP 2015-20.

M/s Mayur Overseas, New Delhi

18/29/AM-16/P-5 0530141055 dated 16.05.2006 Relaxation in fulfillment of average EO submission of the party for relaxation in fulfillment of average EO and decided not to recommend the case for relaxation as the party has not fulfilled either specific export obligation or Average EO.

ssion of the party for relaxation in fulfillment of average EO and decided not to recommend the case for relaxation as the party has not fulfilled either specific export obligation or Average EO. 16. M/s Hindustan Zinc Limited, Udaipur

01/36/218/174/A M-15/EPCG-I 1330003880 dated 30.07.2013 1330003881 dated 30.07.2013

Shifting of capital goods submission of the party that the capital goods were imported and installed at their Zawar Mines Plant and installation certificates were obtained from Central Excise Authority. Incidentally the said capital goods were required at their unit located at Sindesar Khurd Mines (Rajsamand). Both the addresses of the units are endorsed in IEC and RCMC. The company has already obtained installation certificate from Central Excise.

The Committee, therefore, decided to regularize shifting of the capital goods from Zawar Mines Plant to Sindesar Khurd Mines (Rajsamand). The regularization is subject to payment of composition fee of
Rs. 5000/-.

M/s Reliance Industries Limited, Navi Mumbai

18/128/AM-15/P-5

Import of transformer which is required for manufacture of Poly Propylene under EPCG Scheme. and decided to reject the request of the party for import of Transformer under EPCG Scheme as transformer is covered under para 5.01 (g) (iv) which is not permitted for import under EPCG scheme.

and decided to reject the request of the party for import of Transformer under EPCG Scheme as transformer is covered under para 5.01 (g) (iv) which is not permitted for import under EPCG scheme. 18. M/s Kraftsworks, Mysore

01/36/218/415/A M-14/EPCG-I 0730005245 dated 06.02.2007 Condonation of block-wise EO and extension in EOP The Committee noted that the party has fulfilled 41.66% EO during the second block period and has Nil export in the first block. The party has also submitted the details of purchase orders.

relaxation under Para 2.58 of FTP 2015-20 to allow:

(a) condonation from condition of fulfillment of block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para

5.14 (c) of HBP 2015-20; and

(b) extension in EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11(a) of HBP Vol. I.2009-14/

Para 5.17 (b) of HBP 2015-20, as the

party could not apply to RA within the prescribed time period.

M/s Bangalore Villas Pvt. Ltd., Bangalore

01/36/218/116/A M-15/EPCG-I 0730004390 dated 21.07.2006 Extension of block- wise EO submission of the party that they have achieved the entire EO imposed under said authorization during the second block.

relaxation under Para 2.58 of FTP 2015-20to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para 5.14

(c) of HBP 2015-20.

M/s Vishkarma Enterprises

01/37/218/220/A M-15/EPCG-II 0530138646 dated 17.05.2005 1. Extension of block-wise EO 2. extension in EOP upto 31.05.2013 The Committee took into account of submission that the party has fulfilled 100% EO within 13 days after the expiry of EOP. The Committee, deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow:

(a) condonation of delay in applying for extension in block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para

5.14 (c) of HBP 2015-20; and

(b) extension in EOP upto 31.05.2013 as per para 2.12.1 of HBP (RE: 2012).

M/s RLM Foods Stuff Pvt. Ltd.

01/37/218/20/AM- 16/EPCG-II 0330033635 dated 10.09.2012 1. Further extension period 3 ½ years for installation of machinery. 2. Allow M/s Mark International Foods Stuff Pvt. Ltd. as supporting manufacture. 3. Allow installation of machinery in supporting manufacturer premises.
submission of the party that they have imported machinery with parts and standard accessories for preparation of meat slaughter line in SKD condition for their slaughter house project. Due to objections from local citizens for their project they were forced to keep the same in warehouse and the same could not be installed.

submission of the party that they could not
install capital goods due to above mentioned reasons and have now acquired another plot for installation of the plant and machinery in the name of their sister concern M/s Mark International Foods Stuff Pvt. Ltd., Aurangabad as supporting manufacturer and have now sought permission for installation of capital goods in the premises of supporting manufacturer M/s Mark International Foods Stuff Pvt. Ltd., Gat No. 925, Village – Bidkin, Tal – Paithan, Dist Aurangabad, (Maharashtra).

nstallation of capital goods in the premises of supporting manufacturer M/s Mark International Foods Stuff Pvt. Ltd., Gat No. 925, Village – Bidkin, Tal – Paithan, Dist Aurangabad, (Maharashtra).

and decided to permit shifting of capital goods to the premises of supporting manufacturer and to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow six months extension for installation of capital goods in the premises of their supporting manufacturer i.e. up to 18th December, 2015 subject to payment of composition fee of Rs. 5000/-. In case party fails to submit the proof of installation by December, 2015 the RA should initiate action for recovery of duty + interest.

M/s Solvay Specialities India Pvt. Ltd., Gujarat

01/37/218/151/A M-15/EPCG-II 0330029745 dated 15.06.2011 Condonation of delay in installation of capital goods
submission of the party that they obtained the invalidation letter dated 4.7.2011 to purchase the CG from indigenous supplier and the CG was installed on 24.03.2013 as the local suppliers took time to make the delivery after submitting the invalidation letter in their favour. The Committee noted that the party has completed their EO within time period.

The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in installation

y has completed their EO within time period.

The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in installation

of capital goods subject to payment of composition fee of Rs.5000/-.

M/s Shiv Shakti Embroidery (P) Ltd., New Delhi

01/37/218/136/A M-15/EPCG-II 0530142126 dated 13.10.2006 Extension of block- wise EO The Committee noted that the party has fulfilled 100% EO during the EOP through third party export. The Committee, deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block-wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.2 of HBP v1 2009- 14/ Para 5.14 (c) of HBP 2015-20.

M/s Weatherford Driling & Production Services (India) Pvt. Ltd., Vadodara

01/37/218/152/A M-15/EPCG-II 3430001170 dated 31.12.2007 Condonation of delay in submission of installation certificate issued by Chartered Engineer and relaxation for non-submission of installation certificate from central excise authority.
The Committee observed that the party has fulfilled 100% EO during the EOP.

Chartered Engineer and relaxation for non-submission of installation certificate from central excise authority.
The Committee observed that the party has fulfilled 100% EO during the EOP. The Committee also noted that the capital goods were imported vide B/E dated 26.02.2008 and the party obtained installation certificate from Chartered Engineer after a delay of about 4 months on 17.01.2009. The party thereafter approached Central Excise Authority on 16.11.2009 to obtain installation certificate however installation certificate has not been issued by the Central Excise Authority.

The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in installation of capital goods and acceptance of installation certificate issued by chartered engineer instead of central excise authority subject to:

i. Payment of composition fee of Rs.5000/- and
ii. Submission of proof of approaching central excise authority to obtain installation certificate.

M/s Paper Dreams Pvt. Ltd., Bhiwadi

01/37/218/256/A M-15/EPCG-II 0530135381 dated 16.12.2003 Extension of block- wise EO submission of the party that they have achieved the entire EO imposed under the said authorization during valid EOP and submitted 2% composition fee to the O/o CLA, New Delhi.

relaxation under Para 2.58 of FTP 2015-20to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA

sition fee to the O/o CLA, New Delhi.

relaxation under Para 2.58 of FTP 2015-20to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA

within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para 5.14

(c) of HBP 2015-20.

M/s Sesa Sterlite Limited, Odisha

01/37/218/28/AM- 16/EPCG-II

Permission for grant of EPCG authorization for imports of (domestic procurement through invalidation route) 159 Nos. of BTAP Wagons and 3 nos. of Break Van type BVZI for pre and post production activity. and decided to defer it due to non-receipt of comments from Department of Heavy Industries. 27. M/s Bharat Aluminium Company Limited, Korba

01/36/218/145/A M-12/EPCG-I

Permission for grant of EPCG authorization for import of (domestic procurement through invalidation route) 53 Nos. of BTAP Wagons and 1 no. of Break Van type BVZI for pre and post production activity. and decided to defer it due to non-receipt of comments from Department of Heavy Industries. 28. M/s Claris Injectable Limited, Ahmedabad

01/36/218/193/A M-15/EPCG-I

15 EPCG authorization s issued during the period of AM-12 to AM-15 Transfer of EPCG authorizations from M/s Claris Lifesciences Ltd. to M/s Claris Injectables Limited on account of slump sale. The Committee observed that the said authorizations were issued to M/s Claris Lifesciences Ltd., and the capital goods were transferred to M/s Claris Injectables Ltd., on slump sale basis.

The Committee noted the submission of the party that vide transfer agreement dated 30.10.2014 between Claris Lifesciences Ltd., (authorization holder) and M/s Claris Injectables Ltd., and that
M/s Claris Injectables Ltd.

sion of the party that vide transfer agreement dated 30.10.2014 between Claris Lifesciences Ltd., (authorization holder) and M/s Claris Injectables Ltd., and that
M/s Claris Injectables Ltd. has acquired the pharmaceuticals business and liability including export obligation of M/s Claris Lifesciences Ltd.

relaxation under Para 2.58 of FTP 2015-20 to allow transfer of EPCG authorizations from M/s Claris Lifesciences Ltd. to M/s Claris Injectables Limited on account of slump sale subject to:

i) Submission of fresh BG/LUT Bond. ii) All the terms and conditions of the EPCG authorizations including maintenance of average EO and Specific EO will remain same. iii) In case the transferee company

exports same and similar item the transferee company would maintain average EO in addition to average EO under these licenses.

M/s Jindal Vijaynagar Steel Ltd. (JVSL), Bangalore

01/36/218/79/AM- 13/EPCG-I

P/CG/215609 0 dated 14.11.1995 Enhancement of authorization value and re-fixation of EO The Committee noted that M/s Jindal Vijaynagar Steel Ltd. (JVSL), Bangalore had obtained EPCG authorization P/CG/2156090 dated 14.11.1995 for import of capital goods for Rs. 250.92 crores with duty saved amount of Rs. 130.56 crores. Customs vide order dated 22.6.2000 held that the value as declared by the importer was required to be enhanced by 59.46 crores. The impugned goods were held liable to confiscation under section 111 (m) of Customs Act 1962 and a penalty was also imposed on the party.

e importer was required to be enhanced by 59.46 crores. The impugned goods were held liable to confiscation under section 111 (m) of Customs Act 1962 and a penalty was also imposed on the party. The party went in appeal against this Order in CESTAT which set aside the Order dated 22.6.2000 of Commissioner Customs. The Department of Revenue went in appeal to the Supreme Court against the CESTAT order. Hon’ble
Supreme Court vide Order dated 21.11.2007 remanded the matter to CESTAT. CESTAT vide order dated 11.3.2010 remanded the case to Commissioner of Customs (EP) for de-novo adjudication. The DoR vide OM dated 25.7.2012 stated that the Commissioner of Customs (EP) Mumbai has investigated the import done by M/s Jindal Vijaynagar Steel Ltd. and has found that the engineering fee, operation licence fee and service fee paid by the party is to be loaded on the declared value and the capital goods are required to be assessed to the value of Rs. 314.02 crores as against the declared value of 183.45 crores. A SCN was also issued which is pending de-novo adjudication before Mumbai Customs. EODC has not been issued so far. The representative of DoR stated that since the matter involves enhancement of licence value and refixation of EO, the matter has been referred to DGFT for a decision. The Committee noted that the party has also requested to enhance the value of EPCG licence by Rs. 130.56 crores to resolve the long pending litigation.

has been referred to DGFT for a decision. The Committee noted that the party has also requested to enhance the value of EPCG licence by Rs. 130.56 crores to resolve the long pending litigation.

and decided to direct the concerned RA to allow enhancement in cif value of EPCG authorization by Rs. 130.56 crores and refix EO accordingly.

This will however not eliminate the factum nor dilute the liability of the investigations initiated by Customs against the party. 30. M/s Ugra Precision 0730001736 dated Extension of block- wise EO
submission of the party that they have

Engineering (P) Ltd., Bangalore

01/37/218/25/AM- 15/EPCG-II 12.04.2004 0730001737 dated 12.04.2004 0730001741 dated 22.04.2004 0730001636 dated 05.03.2004 0730001823 dated 25.05.2004 completed the entire EO imposed under said authorization during EOP. The Committee, deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow condonation of delay in applying for extension in block- wise EO, as the party could not apply to RA within the prescribed time period. This would be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of

Para 5.8.2 of HBP v1 2009-14/ Para 5.14

(c) of HBP 2015-20.

M/s Cibi Krishna Textiles (P) Ltd., Tamilnadu

01/36/218/10/AM- 16/EPCG-I 3530002266 dated 28.12.2006
3530002267 dated 28.12.2006 Extension in EOP for 2 years The Committee noted that the party has fulfilled 83.74% EO against authorization No. 3530002266 dated 28.12.2006 in second block and 45.69% EO in respect of
authorization No. 3530002267 dated 28.12.2006.

The Committee also noted that the block- wise extension was already granted to the party by RA, Madurai.

The Committee, deliberated upon the case relaxation under Para 2.58 of FTP 2015-20 to allow extension in EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled EO or an enhancement in EO imposed to the extent of 10% of total EO at the choice of exporter, for each year of extension sought in terms of provisions contained in Para 5.11(a) of HBP Vol. I. 2009-14/ Para 5.17 (b) of HBP 2015-20, as the party could not apply to RA within the prescribed time period.

M/s Focus Energy Limited, New Delhi

01/36/218/125/A M-15/EPCG-I 0530156044 dated 21.07.2011 Permission for re- export of capital goods The Committee observed that the capital goods were imported vide Bill of Entry No. 4373848 dated 17.08.2011 and the goods were cleared from Customs on 12.09.2011. However, after installation of machines, the party found that these machines were unfit for use.

Bill of Entry No. 4373848 dated 17.08.2011 and the goods were cleared from Customs on 12.09.2011. However, after installation of machines, the party found that these machines were unfit for use.

The Committee noted that party approached CLA, New Delhi on 08-09-2014 for re-export of capital goods, however the prescribed time period of three years expired during processing of the file as a result CLA, could not consider their case.

relaxation under Para 2.58 of FTP 2015-20 to allow re-export of

DGFT = Directorate General of Foreign Trade DG = Director General FTP = Foreign Trade Policy HBP v1 = Handbook of Procedure Vol. I Capital Goods as per Para 5.25 (a) of HBP 2015-20.

M/s Vardhman Textile Limited, Ludhiana

01/37/218/22/AM- 16/EPCG-II

Issuance of EPCG authorization for import of capital goods i.e. Distribution Transformer, APFC Panel and UPS System. The Technical member from DHI informed that although the capital goods proposed to be imported are covered under the provision of para 5.01 (g) of FTP 2015-20, APFC Panel which is an Automatic Power Factor Controller is essentially required since it is not only used to maintain low power factor to the unit but it can control the power factor as desirable. The UPS system is also needed to ensure power supply for a limited period during power outage. The Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow import of APFC Panel and uninterrupted power source (UPS) system under EPCG scheme.

e Committee, therefore, decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow import of APFC Panel and uninterrupted power source (UPS) system under EPCG scheme. The Committee, however decided to reject the request of the party for import of Distribution Transformer under EPCG Scheme.

M/s Mansingh Hotels & Resorts Ltd., New Delhi

18/62/AM-15/P-5 0530134520 dated 17.07.2003
0530136339 dated 08.06.2004 Issuance of EODC The Committee observed that the case was placed before the EPCG Committee in its meeting held on 27.04.2015 wherein it was decided to defer the case with direction to call for proof of exact date of car sale and a copy of chartered accountant certificate for showing the EO fulfilment status by the party.

The Committee took into account of submissions by the party that the date of sale of vehicles imported under said authorizations is 17.02.2011 and 03.12.2012 while the party has submitted a copy of CA Certificate showing the date of completion of EO as 31.03.2005.

and it was decided to advise CLA, New Delhi to consider the request of the party for issuance of EODC.
35. M/s Reliance Industries Limited, Navi Mumbai

18/05/AM-16/P-5

Clarification on installation of capital goods in factory/premises of the authorization holder imported under EPGG Scheme. and decided to defer it for further examination.

P-5

Clarification on installation of capital goods in factory/premises of the authorization holder imported under EPGG Scheme. and decided to defer it for further examination.

EO = Export Obligation EODC = Export Obligation Discharge Certificate EOP = Export Obligation Period EPCG = Export Promotion Capital Goods RA = Regional Authority BG = Bank Guarantee FFE = Free Foreign Exchange FE = Foreign Exchange IEC = Importer-Exporter Code DOR = Department of Revenue CLA = Central Licensing Area IEM = Industrial Entrepreneurs Memorandum RCMC = Registration-cum-Membership Certificate