IN FORCE EPCG Committee EPCG 2016-09-26

DGFT Committee Minutes

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MINUTES OF EPCG COMMITTEE MEETING HELD UNDER THE CHAIRMANSHIP OF SHRI JAIKANT SINGH, ADDITIONAL DIRECTOR GENERAL OF FOREIGN TRADE AT 14:30 Hours ON 26.09.2016.

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 S.K. Jain, Development Officer, DIPP. d. Smt. Chitra Sharma, Deputy Director General of Foreign Trade, DGFT e. Shri Kumar Rahul, Deputy Director General of Foreign Trade, DGFT f. Shri S.K. Kala, Foreign Trade Development Officer, DGFT g. Shri A.S. Chauhan, Foreign Trade Development Officer, DGFT h. Shri S.K. Panigrahi, Economic Officer, DGFT

II. Minutes of the last Meeting held on 30.08.2016 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 Arun Plasto Moulders (India) Pvt. Ltd., Chennai

01/36/218/219/AM- 16/EPCG-I 0430004023 dated 29.08.2006 Regularization of shifting of capital goods.
The Committee took into account the submission of the party that they had obtained the subject authorization for their factory located at C-3, Thiru Vee Kaa Industrial Estate, Ekkaduthangal, Guindy, Chennai – 600032. However, the CG imported is a basic machine in the line of
production which could not be installed in the said premises because the remaining parts of the line of production was installed in another unit M-6, SIDCO Industrial Estate, Guindy, Chennai – 600032. The party, therefore installed the capital goods at the unit located at M-6, SIDCO Industrial Estate, Guindy, Chennai – 600032 and obtained the installation certificate from Central Excise Authority. The party has furnished a copy of IEC wherein the new address of the place of installation of CG is mentioned.

The Committee, therefore, decided to regularize the shifting of capital goods from C-3, Thiru Vee Kaa Industrial Estate, Ekkaduthangal, Guindy, Chennai – 600032
to M-6, SIDCO Industrial Estate, Guindy, Chennai – 600032 subject to payment of composition fee of Rs. 5000/-. 2. M/s Akums Drugs & Pharmaceuticals Limited, Delhi

01/36/218/118/AM- 16/EPCG-I 14 EPCG authorization s issued during the period of AM- 07 to AM-11. Extension of block-wise EO period. The Committee noted that the request of the party was placed before the EPCG Committee meeting held on 20.01.2016, wherein it was decided to defer it with directions to obtain report from RA concerned to confirm whether the party has requested for extension of EO and if so the EO fulfilment status of the authorizations.

CLA, New Delhi has reported that the party has not submitted any request for extension of EOP in respect of subject 14 EPCG authorizations. Party has confirmed that they have fulfilled entire EO in respect of all the 14 EPCG authorizations.

The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP2015-20 to allow extension of block- wise EOP, as the party could not apply to RA within the prescribed time period. This shall be subject to payment of 2% composition fee on duty saved amount in
proportion to the short fall at the end of each block in terms of the provisions of Para 5.8.3 of HBP 2004-09 and 2009-14.

This has the approval of DG.
3. M/s Asahi India Glass Ltd., New Delhi.

01/36/218/61/AM- 17/EPCG-I 0530144220 dated 27.07.2007 Condonation of delay in submission of installation certificate. submission of the party that they had informed the excise authorities about import of the CG but installation certificate could not be obtained in time. Thereafter, they have obtained the installation certificate from the Central Excise which is beyond prescribed time. The Committee, therefore, decided to recommend to DG for relaxation under

Para 2.58 of FTP 2015-20 to allow

condonation of delay in submission of installation certificate subject to payment of composition fee of Rs. 5000/-.

M/s KL Hi- Tech Secure Print Ltd., Telangana.

01/36/218/108/AM- 16/EPCG-I 0930004367 dated 05.09.2008 EOP. submission of the party that they fulfilled 100% EO within original EOP.

relaxation under Para 2.58 of FTP2015-20 to allow extension of block- wise EOP, as the party could not apply to RA within the prescribed time period. This composition fee on duty saved amount in
proportion to the short fall at the end of each block in terms of the provisions of Para 5.8.3 of HBP 2009-14.

M/s Jai Mata Industries, Bikaner.

01/36/218/84/AM- 17/EPCG-I 1330001546 dated 12.03.2007 Extension of EOP for 2 years. The Committee noted that the party has fulfilled 26.20% EO during the original EOP but failed to fulfil the entire EO due to global economic slowdown. Now they have export orders in hand and are confident to fulfil the EO within extended EOP.

relaxation under Para 2.58 of FTP 2015-20 to allow extension of 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 of HBP 2004-09, as the party could not apply to RA within the prescribed time period.

M/s Jupiter International Limited, Kolkata.

01/36/218/36/AM- 17/EPCG-I 0230005500 dated 12.07.2010
0230005580 dated 03.08.2010 0230005579 dated 03.08.2010
0230005884 dated 27.10.2010
0230006308 dated 11.02.2011 To allow fulfillment of 100% EO through alternate products viz. “solar cells/ photovoltaic cells” produced by their Group Company (i.e. M/s Jupiter Solar Power Ltd.). submission of the party that exports of CDRs, DVD-Rs, information technology software in optical media, compact disc (Audio/Video), DVD-R etc have virtually dried up in view of the technological changes and innovations in the Audio/ video industry. The representative of the party appeared for PH and stated that the export market of the DVD-Rs has crashed and the major players in this industry have closed down completely.

The Committee observed that the RA has already allowed 50% EO fulfillment through export of alternate products (Solar Cells) manufactured by their Group Company as per policy.

relaxation under Para 2.58 of FTP 2015-20 to allow 100% EO fulfillment through alternate product subject to maintenance of average EO of the alternate product as per policy.

M/s Eaton Fluid Power Limited, Pune

01/36/218/79/AM- 17/EPCG-I 3130002146 dated 12.12.2006
3130002147 dated 12.12.2006
3130002189 dated 04.01.2007 EOP. fulfilled their entire EO during the second block period in respect of all the 03 EPCG authorizations.

M/s K.G. Nandini Enterprises, Bangalore.

01/36/218/112/AM- 16/EPCG-I 0730007069 dated 17.06.2008 EOP and extension of EOP for 2 years. submission of the party that they could not make any exports during the original EOP due to frequent fluctuation in price of their export product and reduced demand for recycled metals. Presently, they have sufficient export orders in hand and are confident to fulfil the EO within extended EOP.

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

a) extension of block-wise EOP, as the party could not apply to RA within the prescribed time period. This

composition fee on duty saved amount in proportion to the shortfall at the end of first block in terms of the provisions of Para 5.8.3 of HBP 2009-14; and
b) extension of 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 of HBP 2009-14, as the party could not apply to RA within the prescribed time period.

M/s Grand Windsor Resorts Limited, Jalandhar

01/36/218/296/AM- 14/EPCG-I 10 EPCG authorization s issued during the period AM- 07 to AM-10. Re-fixation of average EO in terms of Para 5.7.4 of HBP 2009-14. The Committee noted that the request of the party was placed before the EPCG Committee meeting held on 27.04.2015, wherein it was decided to defer the case as representative of the DOR had stated that the matter is under examination.

and decided to defer it with direction to obtain report from CLA, New Delhi on the action taken/ proposed to be taken by them on report of DRI.
10. M/s Sumeet Facilities Pvt. Ltd, Pune

01/37/218/39/AM- 17/EPCG-II 3130003178 dated 04.06.2008 3130004482 dated 07.01.2010 EO and extension of EOP for 2 years. submission of the party that they could not fulfill any EO due to recession in global market. At present they have sufficient export orders in hand and are confident to fulfil the EO in extended EOP.

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

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.3 of HBP 2009-14; and 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 of
HBP 2009-14, as the party could not apply to RA within the prescribed
time.

M/s Tata Motors Limited, Mumbai

01/37/218/122/AM- 16/EPCG-II 29 EPCG authorization s issued from AM-03 to AM-09. Condonation of delay in installation of capital goods. submission of the party that the Capital Goodsimported by them are sophisticated machines/equipments, which were required to be installed by supplier’s engineers to establish accuracies, reliability and productivity which resulted in delay in installation of capital goods.

fulfilled 100% EO in respect of all 29 EPCG authorizations and also obtained the installation certificate from Central Excise, which is beyond 18 months from the date of import.

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/- for each authorization.

M/s Welspun Steel Limited, Mumbai

01/37/218/290/AM- 16/EPCG-II 0330012707 dated 26.07.2006 0330013687 dated 20.10.2006 Condonation of procedural lapse of not applying to RA concerned for endorsement of alternate product before effecting exports.
submission of the party that they have been manufacturing and exporting "Non Alloy TMT Bar" before issuance of said EPCG Authorisation but did not mention "Non Alloy TMT Bar" as their resultant export product in the authorizations.

The Committee further noted that RA, Mumbai has already added "Non Alloy TMT Bar" as their export product on 19.11.2013, with the condition that the party has to maintain additional annual average EO of the alternate product. However the party has made exports from 09.03.2011 to 03.06.2011 and therefore, requested to count the export of alternate product, prior to endorsement.

relaxation under Para 2.58 of FTP 2015-20 to allow condonation of
procedural lapse of not applying to RA concerned for endorsement of alternate product before effecting exports.

The additional export obligation imposed shall be over and above the average exports achieved by the party in preceding three years for both the original and the substitute product(s) even in cases where the average is exempt for the substitute product (s) as given in para 5.7.6 of the HBP(RE 2006).

M/s Tirupati Balaji Polymers Pvt. Ltd, Surat. 5230009864 dated 16.12.2011 Waiver of export obligation. and decided to reject the request of the party for waiver of Export Obligation on the

01/37/218/148/AM- 17/EPCG-II grounds that there is no policy provision for waiver of EO. The party may exercise the option of exit from the EPCG scheme by paying applicable duty and interest.

M/s Sri Annapurna Cotton Mills & Industries Ltd, Kolkata

01/37/218/232/AM- 14/EPCG-II 0230001461 dated 10.04.2006 0230001505 dated 01.05.2006 EO and extension of EOP for 4 years (i.e. first and second extension). submission of the party that they were unable to fulfil the EO due to worldwide recession, intermittent restrictions on export of cotton yarn and introduction of quota system for export of cotton yarn during the original export obligation period. The party has submitted that they have sufficient export orders now and are confident to fulfil the EO in extended period.

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

a) party could not apply to RA within the prescribed time period. This shall be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of first block in terms of the provisions of Para 5.8.3 of HBP 2004-09; and payment of composition fee equal to 2% of proportionate duty saved extension sought in terms of HBP 2004-09, as the party could not apply to RA within the prescribed time period. c) second extension of EOP for two years with a condition that 50% of duty payable in proportion to the unfulfilled EO is paid by the authorization holder to custom authorities before endorsement of extension in made on EPCG authorization by RA concerned in terms of provisions contained in

Para 5.11 of HBP 2004-09.

M/s Tech Sutre Industries Limited, Mumbai

01/37/218/59/AM- 16/EPCG-II 0330022306 dated 27.01.2009 0330022307 dated 27.01.2009 i. Condonation of delay in installation of capital goods;
ii. Extension of block- wise EOP. The Committee took into the account the submission of the party that they could not install the capital goods within time and consequently, could not fulfill the EO. The delay in installation was due to high investment costs in setting up the production plant. The cycle of production could commence only after 3-4 years of import of Capital Goods.

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

a) condonation of delay in installation of capital goods subject to payment of
composition fee of Rs. 5000/- for each authorization. b) extension of block-wise EOP, as the party could not apply to RA within the prescribed time period. This shall be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of first block in terms of the provisions of Para 5.8.3 of HBP 2009-14.

M/s Rothe Erde India Pvt. Ltd., Nashik

01/37/218/65/AM- 16/EPCG-II 3130005607 dated 23.03.2011 3130005308 dated 01.12.2010 3130005372 dated 22.12.2010 3130005590 dated 16.03.2011 3130005587 dated 16.03.2011 3130003976 dated 22.04.2009 3130004721 dated 06.04.2010 i. Extension of EOP for 2 years; ii. Regularization of exports made by Group Company for fulfillment of EO. The Committee noted that the case was earlier placed before the EPCG Committee meeting held on 28.04.2016, 25.07.2016 and 30.08.2016, wherein it was decided to defer it with directions to obtain comments of DoR. Representative of DoR again informed that the report from DRI is yet to be received.

The Committee, therefore, decided to defer
the case with directions to request DoR to expedite the comments.

M/s P.M.P. Textiles Spinning Mills Limited, Chennai.

01/37/218/124/AM- 17/EPCG-II 0430004288 dated 06.11.2006 EOP. fulfilled 96.56% EO during second block period.

relaxation under Para 2.58 of FTP 2015-20 to allow extension of block-wise EOP, as the party could not apply to RA within the prescribed time period. This shall be subject to payment of 2% composition fee on duty saved amount in proportion to the shortfall at the end of first block in terms of the provisions of Para 5.8.3 of HBP 2004- 09.

M/s Yazaki India Limited.

01/37/218/201/AM- 14/EPCG-II 3130000108 dated 28.02.2001
3130000123 dated 28.05.2001
3130000156 dated 01.10.2001 3130000176 dated 18.12.2001 3130000148 Subsumption of outstanding EO against EPCG authorizations in the export performance of the unit being converted from DTA to EOU. The Committee noted that six EPCG licenses were granted to the company formerly known as Tata Yazaki Autocomp Ltd, (now known as Yazaki India Ltd), in the year AM 01 and AM 02 for the purpose of manufacturing integrated Wiring Harness Including high tension battery cables and their components and parts thereof. The firm had fulfilled E.O. in four authorizations prior to the date of conversion from DTA to E.O.U while in respect of two authorisations E.O. was not fulfilled.

dated 29.08.2001 3130000219 dated 03.07.2002 The representative of the company appeared for PH and stated that they had applied for conversion of DTA unit to EOU in the month of July, 2002 to Development Commissioner, SEEPZ Mumbai with a request to subsume the outstanding EO of the pending EPCG authorizations under the EOU scheme. Permission was granted by the Development Commissioner, SEEPZ, Mumbai, vide their letter No.PER:45(2002) SEEP/ EOU/-5 dated 15.07.2002.

The unit continued its operation as 100% EOU and exports were made from EOU including that of against the above stated EPCG licenses, and the cumulative export for the first term of five years was to the tune of Rs.167.51 crores having a positive Net Foreign Exchange earnings (NEE) of Rs.4.74 crores after considering the cost of duty free capital goods imported.

The Committee noted that the party had made application for debonding from EOU to DTA on 24.1.2010. Para 6.21(a) of HBP Vol.1 (RE:2003)/2002-2007 states that ‘in case there is an outstanding export commitment under the EPCG scheme, it will be subsumed in the export performance of the unit’.

The Committee was of the view that the EO of EPCG has been subsumed on unit getting converted into an EOU and that this does not require relaxation in policy. RA will accordingly examine the request of the party in terms of Para 6.21(a) of HBP Vol.1 (RE: 2003)/2002-2007.

M/s Sabma Spintex (P) Limited, Rajapalayam

01/37/218/186/AM- 16/EPCG-II 3530003288 dated 13.06.2008 3530003289 dated 13.06.2008 3530003572 dated 07.01.2009 EO and extension of EOP for 2 years. unable to fulfill the EO due to recession in the international market. Now, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

a) extension of block-wise EOP in respect of all the 3 EPCG authorizations, as the party could not apply to RA within the prescribed time period. This shall 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 5.8.3 of HBP 2009- 14; and b) extension of EOP for 2 years in respect of 02 EPCG authorization Nos. 3530003288 dated 13.06.2008 and 3530003289 dated 13.06.2008 on payment of composition fee equal to

2% of proportionate duty saved extension sought in terms of HBP 2009-14, as the party could not apply to RA within the prescribed time.

M/s Sri Ram Match industries, Tamil Nadu

01/37/218/140/AM- 17/EPCG-II 3530005296 dated 13.06.2013 Regularization of shifting of capital goods to a different unit of the authorization holder. submission of the party that they had imported the capital goods to be installed at 65/1, Aruppukottai Road, Ettayapuram, Tuticorin, District-628902 but installed the capital goods in a different unit at D. No.61/1, R.S. No. 110/1B1, North Car Street, (Mayana Salai), Ettayapuram, Tuticorin-628902 and obtained the installation certificate from Central Excise. The party has furnished copies of IEC & RCMC wherein the new address of installation of CG is mentioned.

The Committee, therefore, decided to regularize the shifting of capital goods from 65/1, Aruppukottai Road, Ettayapuram, Tuticorin, District-628902 to D. No.61/1, R.S. No. 110/1B1, North Car Street, (Mayana Salai), Ettayapuram, Tuticorin-628902 subject to payment of composition fee of Rs. 5000/-

M/s Rai Packaging Pvt. Ltd, New Delhi.

01/37/218/175/AM- 17/EPCG-II 0530146125 dated 12.05.2008 EO and extension of EOP for 2 years. unable to fulfil the EO due to global recession. Party has submitted that now, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

a) the prescribed time period. This shall 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 5.8.3 of HBP 2009-14; and b) extension of EOP for 2 years on payment of composition fee equal to 2% of proportionate duty saved extension sought in terms of HBP 2009-14, as the party could not

apply to RA within the prescribed time.

M/s Prabhat Rotopack Pvt. Ltd, Mathura (U.P.)

01/37/218/161/AM- 17/EPCG-II 0630001205 dated 15.01.2008 EOP and extension of EOP for 2 years. unable to fulfill the EO due to recession in export market. Party has submitted that now, they have export orders in hand and are confident to fulfil the EO in extended EOP.

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

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in 5.8.3 of HBP 2009-14; and payment of composition fee equal to 2% of proportionate duty saved 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 of HBP 2009-14, as the party could not apply to RA within the prescribed time.

M/s Partap Industries Ltd, Punjab

01/37/218/68/AM- 17/EPCG-II 3030004867 dated 31.12.2008 EOP. The Committee took into account the submission of the party that they could not fulfil EO due to global recession. At present they have enough export orders in hand and are confident of fulfilment of EO.

relaxation under Para 2.58 of FTP2015-20 to allow extension of block- wise EOP, as the party could not apply to RA within the prescribed time period. This composition fee on duty saved amount in
proportion to the shortfall at the end of first block in terms of the provisions of

Para 5.8.3 of HBP 2009-14.

M/s Tata Motors Limited, Mumbai

01/37/218/103/AM- 17/EPCG-II 0330007506 dated 29.12.2004 0330015605 dated 28.03.2007 0330016401 dated Condonation of delay in installation of capital goods . submission of the party that the Capital Goods imported by them are sophisticated machines /equipments, which were required to be installed by supplier’s engineers to establish accuracies, reliability and productivity which resulted in delay in installation of

13.06.2007 capital goods.

fulfilled their entire EO in respect of all 03 EPCG authorizations and also obtained the installation certificate from Central Excise, but the capital goods have been installed beyond 18 months from the date of import.

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/- for each authorization.

M/s Rajkalp Mudranalaya Pvt. Ltd, Ahmadabad.

01/37/218/137/AM- 17/EPCG-II 0830001976 dated 28.03.2007 EO and extension of EOP for 2 years. unable to fulfil the EO due to economic recession. At present, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

M/s Systemair India Pvt. Ltd., Hyderabad.

01/37/218/96/AM- 17/EPCG-II 0530142843 dated 12.01.2007 Regularization of shifting of capital goods. submission of the party that they have imported the capital goods to be installed at A-19, Sector -64, Noida but installed the capital goods in their other unit at Plot No.3, Sector 31, Ecotech-1, Kasna, Greater Noida and also obtained the installation certificate from Central Excise. The party has furnished a copy of IEC and RCMC wherein the address of the installation of CG is mentioned. The Committee noted that the party had already paid customs duty with interest for

closure of the case.

The Committee, therefore, decided to regularize the shifting of capital goods from A-19, Sector -64, Noida and shifted/installed the capital goods in their other unit at Plot No.3, Sector 31, Ecotech- 1, Kasna, Greater Noida subject to payment of composition fee of Rs. 5000/-. 27. M/s Pavan Cotton Products Pvt. Ltd., Guntur.

01/37/218/50/AM- 17/EPCG-II 0930003100 dated 19.04.2007 EOP and extension of EOP for 2 years. submission of the party that they have fulfilled 49.54% EO during the original EOP, but failed to fulfil the entire EO due to recession in global market. Party has submitted that now, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

M/s Shivom Cotspin Ltd, Sirmour, HP.

01/37/218/120/AM- 17/EPCG-II 2230000366 dated 02.08.2006 EOP. fulfilled 100% EO during the second block period.

relaxation under Para 2.58 of FTP 2015-20 to allow extension of block-wise EOP, as the party could not apply to RA within the prescribed time period. This composition fee on duty saved amount
in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.3 of HBP 2004-09.

M/s Sajan Rice & Pulse Mill, Vadodara. 3430000682 dated 30.09.2005 i. Extension of block-wise EO and extension of EOP unable to fulfil the EO due to ban on export

01/37/218/58/AM- 16/EPCG-II for 2 years
ii. Allowing addition of export product ‘Wheat” for fulfillment of EO. of pulses. Now, they have submitted valid export order for export of rice and wheat and are confident to fulfil the EO in extended EOP.

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

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in 5.8.3 of HBP 2004-09; and 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
of HBP 2004-09, as the party could not apply to RA within the prescribed time.

RA shall examine the request of endorsement of alternate product in terms of policy provisions at the time of issuance of said authorization.

M/s Santosh Pulse Mills, Vadodara.

01/37/218/157/AM- 15/EPCG-II 3430000873 dated 19.06.2006 Extension of EOP for 2 years. unable to fulfil the EO due to ban on export of pulses since 27.6.2006. Now, they have submitted valid export order for export of rice and wheat and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

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 of HBP 2009-14, as the

the prescribed time. c) second extension of EOP for two years with a condition that 50% of duty payable in proportion to the unfulfilled EO is paid by the authorization holder to custom authorities before endorsement of extension in made on EPCG authorization by RA concerned in terms of provisions contained in

Para 5.11 of HBP 2004-09.

M/s Bhupendra Steels (P) Limited, Faridabad.

01/36/218/110/AM- 16/EPCG-I 0530139920 dated 18.11.2005
0530158460 dated 31.05.2012 Regularization of shifting of capital goods. submission of the party that they had imported the capital goods to be installed at Plot No. 25, Sector-6, Faridabad but installed the capital goods in their other unit at plot No. 146, Sector-24, Faridabad. The party has already obtained installation certificates from Chartered Engineer as well as from Central Excise in respect of both the authorizations. The party has furnished a copy of IEC, RCMC and SSI certificate, wherein the address of the unit of installation of CG is endorsed.

The Committee, therefore, decided to regularize the shifting of capital goods from Plot No. 25, Sector-6, Faridabad to plot No. 146, Sector-24, Faridabad subject to payment of composition fee of Rs. 5000/- for each authorisation. 32. M/s Dharampal Premchand Limited, Noida.

01/36/218/37/AM- 14/EPCG-I 0530138430 dated 11.04.2005 i. Extension of EOP for 5 years i.e. up to 11.04.2018 in terms of Para 5.11 of HBP 2005. ii. Permission to shift the capital goods. The Committee noted that the request of the party for extension of block-wise EOP, extension of EOP upto 11.10.2016, inclusion of alternate export products rice and permission to shift the capital goods were placed before the EPCG Committee meeting held on 25.07.2016, wherein the Committee had granted extension of EOP upto 11.10.2016 and advised the party to approach RA concerned for inclusion of alternate products in terms of policy provisions applicable at the time of issuance of the said authorization. The Committee had further decided that the shifting of capital goods will be allowed only after the completion of EO.

relaxation under Para 2.58 of FTP 2015-20 to allow extension in EO period upto 5 years with 100% enhanced EO subject to such undertaking by the authorisation holder in terms of Para 5.11 of HBP Vol.1 notified vide Public Notice No.1 dated 8th April, 2005, coming into force from1st April, 2005. Subject to submission of:

i. An additional BG to the extent of the proportional duty saved to the enhanced EO imposed to the licensing authority concerned in addition to extending the validity of BG/LUT submitted at the time of initial imports. No exemption from BG shall be granted any category of exporter under this Clause.
ii. The extension in export obligation period shall be subject to such terms and conditions as may be prescribed by the competent authority.
iii. The authorisation holder shall be required to maintain average export obligation during the extended period as well.

The Party was granted PH which was attended by Mr. Sanjay Kumar Yadav. He stated that they have requested for shifting of two generator sets from their Agartala unit to their other unit at A-34 & 35, Sector – 60, Noida – 201 301 (U.P.).

The Committee deliberated on the case. Since additional item of export has been added, which is being manufactured in their Noida unit and EO period has been extended, the Committee decided to allow the shifting of two numbers of Generator sets from Plot no. 5595, Khatian, No. 2 Industrial Zone no. 1, Bodhjung Nagar, Agartala, Tripura to A-34 & 35, Sector – 60, Noida – 201 301 (U.P.).

M/s Kumaragiri Electronic Ltd., Chennai

01/36/218/61/AM- 15/EPCG-I 0430002924 dated 12.08.2005 Condonation of procedural lapse for not-mentioning the name and authorization number in the shipping bills no. 3884210 dt. 03.02.2013. fulfilled 87.27% EO within original EOP.

submission of the party that they have not mentioned the EPCG authorization number on shipping bill No. 3884210 dt. 03.02.2013.

relaxation under Para 2.58 of FTP 2015-20 to allow to counting of the shipping bill no. 3884210 dt. 03.02.2013 for fulfilment of EO in respect of EPCG authorization No. 0430002924 dated 12.05.2005 subject to the condition that there is no double counting of exports/Shipping Bill. The Committee further recommended imposition of a composition fee of Rs. 200/- on shipping bill where EPCG authorization number has not been endorsed and which are being counted for fulfilment of EO.

RA may ensure that the item of export product in shipping bill no. 3884210 dt. 03.02.2013 should be same as mentioned in EPCG authorization No. 0430002924 dated

12.05.2005.

M/s Jupiter Laminations Pvt. Ltd., Bahalgarh (Sonepat)

01/36/218/105/AM- 17/EPCG-I 0530165480 dated 27.07.2015 Regularization of shifting of capital goods. submission of the party that they have imported the capital goods to be installed at Village - Liwaspur, Bhalgarh Industrial Area, Distt. Sonipat and have shifted/installed the capital goods in their other unit at Khasra No. 34/12/2,19,22/1/1, Village Rathdhana, Distt. Sonipat, Haryana and also obtained the installation certificate from Central Excise certifying that the capital goods are installed in the said factory/premises. The party has furnished a copy of IEC & RCMC, wherein the new address of the installation of CG is mentioned.

The Committee, therefore, decided to regularize the shifting of capital goods from Village - Liwaspur, Bhalgarh Industrial Area, Distt. Sonipat to Khasra No. 34/12/2,19,22/1/1, Village Rathdhana, Distt. Sonipat, Haryana subject to payment of composition fee of Rs. 5000/-. 35. M/s Max Speciality Films Limited, Punjab.

18/90/AM-17/P-5 2230000988 dated 22.08.2008 Extension of EOP for 2 years. submission of the party that they have exported goods amounting to Rs. 154.22 Lac during 2009-10 to 2015-16. Further, the party has export orders and expect to complete the entire EO within extended time.

2015-20 to allow extension of 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 of HBP 2009-14, as the party could not apply to RA within the prescribed time.

M/s Gold Plus Glass Industry Limited, Delhi.

01/36/218/01/AM- 17/EPCG-I 30 EPCG authorization s issued during AM- 2008- to AM- 10. (As per list attached) i) Extension of block-wise EO period in respect of 30 EPCG authorizations. ii) Extension of EOP for 2 years against 14 EPCG authorizations. submission of the party that they could not fulfil EO due to higher cost of production, increased price of fuel, non-allotment of silica sand mines & soda ash etc. Part has submitted that now, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

a) extension of block-wise EOP in respect of all the 30 EPCG authorizations issued during AM-2008- to AM-10, as the party could not apply to RA within

the prescribed time period. This shall 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 5.8.3 of HBP 2009- 14; and b) extension of EOP for 2 years in respect of 14 EPCG authorization Nos. 05301414915 dated 05.11.2007, 0530145656 dated 20.02.2008, 0530145797 dated 13.03.2008, 0530145824 dated 17.02.2008, 0530145935 dated 04.04.2008, 0530145945 dated 08.04.2008, 0530146033 dated 28.01.2008, 0530146047 dated 30.04.2008, 0530146048 dated 30.04.2008, 0530146053 dated 30.04.2008, 0530146055 dated 30.04.2008, 0530146074 dated 02.05.2008, 0530146202 dated 23.05.2008 and 0530146203 dated 23.05.2008 on payment of composition fee equal to 2% of proportionate duty saved extension sought in terms of HBP 2009-14, as the party could not apply to RA within the prescribed time.

M/s Sree Jaya Soundhram Textile Mills Pvt. Ltd.,

01/37/218/211/AM- 16/EPCG-II 3530002774 dated 25.07.2007 3530002455 dated 16.03.2007 EO and extension of EOP for 2 years.
The Committee noted that the case was placed before the EPCG Committee meeting held on 30.08.2016, wherein it was decided to defer it with directions to the party to furnish copies of valid export order.

unable to fulfill the EO due to stiff global competition, increase in the domestic price of raw material and labour cost. At present, they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in 5.8.3 of HBP 2009-14; and payment of composition fee equal

to 2% of proportionate duty saved extension sought in terms of HBP 2009-14, as the party could not apply to RA within the prescribed time.

Third party exports if any shall be subject to conditions prescribed in Para 5.10 (d) of HBP 2015-20 read with policy circular 3 dated 02.09.2015.

M/s Sunrise Industries, Ulhas Nagar.

01/37/218/169/AM- 17/EPCG-II 0330012241 dated 08.06.2006 EOP. fulfilled 100% EO during the second block period.

relaxation under Para 2.58 of FTP 2015-20 to allow extension of block-wise EOP, as the party could not apply to RA within the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in terms of the provisions of Para 5.8.3 of HBP 2004-09.

M/s Siddhi (Guj) Hospitality LLP., Ahmedabad.

01/37/218/253/AM- 16/EPCG-II 31 numbers of EPCG authorization s issued during AM13 to AM-14. Transfer of 31 EPCG authorizations from M/s Siddhi (Guj) Hospitality LLP to M/s Caspia Hotels Pvt. Ltd. on the basis of slump sale. The Committee observed that the firm M/s Siddhi (Guj) Hospitality LLP, Ahmadabad (authorization Holder) has been taken over by M/s Caspia Hotels Pvt Ltd w.e.f. 28.12.2015 and all the assets and liabilities
of the firm M/s Siddhi (Guj) Hospitality LLP were transferred to M/s Caspia Hotels Pvt. on slump sale basis. The representative of the party appeared for PH and explained that as per clause of the Business transfer agreement the Transferor and the Partners shall make the necessary application to cause the transfer of the EPCG authorization in favour of the transferee.

The Committee, therefore, decided to recommend to DG for relaxation under

Para 2.58 of FTP 2015-20 to allow

transfer of business of M/s Siddhi (Guj) Hospitality LLP, Ahmadabad to M/s Caspia Hotels Pvt Ltd and to allow M/s. Caspia Hotels Ltd to fulfil export obligation in respect of all EPCG authorisations issued during AM-13 to AM-14. The transferee company, however, shall furnish fresh BG/LUT to the Customs authorities.

M/s Quantaplast Polymer Pvt. Ltd., Jaipur.

1330001709 dated 26.10.2007
1330001732 EO and extension of EOP for 2 years. The Committee noted that earlier the case was placed before the EPCG Committee meeting held on 30.08.2016, wherein it was decided to defer it with directions to the

01/37/218/94/AM- 17/EPCG-II dated 28.11.2007
1330001822 dated 31.03.2008 1330001823 dated 31.03.2008
1330001846 dated 29.05.2008 party to furnish copies of valid export order. Party has now submitted the copies of export order.

2015-20 to allow:

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in 5.8.3 of HBP 2009-14; and 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
of HBP 2009-14, as the party could not apply to RA within the prescribed time.

Third party exports if any shall be subject to conditions prescribed in Para 5.10 (d) of HBP 2015-20 read with policy circular 3 dated 02.09.2015.

M/s Wellknown Polyesters Limited, Mumbai

01/37/218/192/AM- 15/EPCG-II 0330032343 dated 30.03.2012 0330032860 dated 12.06.2012 0330033012 dated 26.06.2012 0330033621 dated 07.09.2012 0330033622 dated 07.09.2012 Inclusion of export product i.e. polyester texturised yarn. The Committee noted that the request
of the party was placed before the EPCG Committee held on 18.12.2015 and 29.03.2016. The case was rejected on the grounds that zero percent EPCG scheme was not available for units availing TUFS benefits when the authorizations were availed by the party and the FTP does not provide for undertaking additional export obligation by export of value added products.

The case was reconsidered by the Committee in view of the party’s representation and comments from Ministry of Textiles. Comments from DoR are awaited as the request is under examination with them. The Committee, therefore, decided to defer the case with a request to DoR to expedite the comments.
42. M/s United Foods Pvt. Ltd., New Delhi.

01/37/218/144/AM- 16/EPCG-II 0530162250 dated 04.02.2014 Amendment in installation address. The Committee took into the account the submission of the party that they have imported two nos. of sortex plant for installation as their factory located at village Bazitpur, Saboli, 004C, Naheri Chahi, Sonipat, Haryana. But, the capital goods were installed at their plant at 329, GIDC, Mithirohar, Gandhidham, Gujarat. However, when the ANF - 5A was submitted to RA

concerned, in the column of installation of capital goods, inadvertently address of their Sonipat factory was printed.

relaxation under Para 2.58 of FTP 2015-20 to allow amendment of factory address in the EPCG authorization from village Bazitpur, Saboli, 004C, Naheri Chahi, Sonipat, Haryana to 329, GIDC, Mithirohar, Gandhidham, Gujarat subject to payment of composition fee of Rs. 5000/-

M/s Public Clothing Pvt. Ltd., Noida

01/37/218/179/AM- 17/EPCG-II 0530144829 dated 22.10.2007 0530144399 dated 22.08.2007 0530145102 dated 30.11.2007 0530146919 dated 19.08.2008 0530147289 dated 23.09.2008 0530149240 dated 25.06.2009 EO and extension of EOP for 2 years. unable to fulfill the EO due to global recession. Part has now submitted that they have export orders in hand and are confident to fulfil the EO in extended EOP.

2015-20 to allow:

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of each block in 5.8.3 of HBP 2004-09 and 2009-14; and 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 of HBP 2004-09 and

2009-14, as the party could not apply to RA within the prescribed
time.

M/s Sybly Industries Limited, Delhi.

01/37/218/50/AM- 17/EPCG-II 0530139225 dated 02.08.2005 0530142999 dated 05.02.2007 i. Extension of EOP for 2 years. ii. Inclusion of alternate export products. The Committee noted that the party has not made any export till date and not submitted installation certificate. DRI, has also initiated enquiry against the EPCG authorization No. 0530142999 dated 05.02.2007 for non- fulfilment of EO and misuse of EPCG scheme. Party has not submitted export documents for redemption.

and decided to reject the request of the party.
45. M/s Shaily Engineering Plastics 3430000842 dated i. Condonation of delay in obtained the installation certificate from

Ltd., Vadodara

01/37/218/97/AM- 17/EPCG-II 03.05.2006 3430000664 dated 07.09.2005 3430000952 dated 22.11.2006 submission of installation certificate issued by Central Excise Authority in respect of 2 EPCG authorizations nos. 3430000842 dated 03.05.2006 and 3430000664 dated 07.09.2005. ii. Acceptance of installation certificate issued by chartered engineer instead of Central Excise against authorization no. 3430000952 dated 22.11.2006. Central Excise in respect of EPCG authorisation Nos. 3430000842 dated 03.05.2006 and 3430000664 dated 07.09.2005, but there was a delay in obtaining of installation certificate beyond 18 months.

submission of the party that they could not obtain the installation certificate from Central Excise in respect of EPCG authorisation No. 3430000952 dated 22.11.2006 which they have obtained from Chartered Engineer.

The Committee, therefore, decided to recommend to DG for relaxation under

Para 2.58 of FTP 2015-20 to allow

condonation of delay in submission of installation certificate in respect of 02 EPCG authorizations Nos. 3430000842 dated 03.05.2006 & 3430000664 dated 07.09.2005 and acceptance of installation certificate issued by chartered engineer instead of Central Excise against authorization no. 3430000952 dated 22.11.2006 subject to payment of composition fee of Rs. 5000/- for each authorization and submission of verification certificate from Central Excise authority that the capital goods are installed in their factory/premises. 46. M/s Styleman Textiles Pvt. Ltd., Tirupur.

01/37/218/252/AM- 16/EPCG-II 3230004742 dated 21.06.2005 3230002844 dated 19.03.2004 Second extension of EOP.
already obtained 2 years extension of EOP in respect of both the authorisations. However, the EPCG authorisation No. 3230002844 was issued on 19.03.2004 when provision for extension in EOP was maximum for two years. Therefore, the Committee decided to reject the request of EO extension beyond this period in case of authorisation No. 3230002844.

The provision for second extension in EOP for additional three years was available when EPCG authorisation No. 3230004742 dated 21.06.2005 was issued provided the party gave an undertaking to get the EO extended by 50%.

The Committee deliberated upon the case and decided to draw the party’s attention to the specific provision in regard (Para 5.11 of HBP 2005-06) to the authorisation number 3230004742 dated 21.06.2005 and approach concerned RA if they need further EO extension. 47. M/s Caparo Engineering India Limited, Gurgaon.

01/36/218/170/AM- 15/EPCG-I 0530142729 dated 29.12.2006 0530142399 dated 16.11.2006 0530142400 dated 16.11.2006 Condonation of procedural lapse of not applying to RA concerned for endorsement of alternate product before effecting exports.
submission of the party that they have already fulfilled the EO by exports of alternate product viz. “Aluminium casting all types” manufactured by them.

The Committee observed that there was a provision to fulfil 100% EO by exports of alternate products at the time of issuance of authorization. The Committee decided to

recommend to DG for relaxation under

Para 2.58 of FTP 2015-20 to allow

condonation of delay in submission of request to RA for endorsement of alternate product viz. Aluminium casting of all types manufactured and exported by the party subject to re-fixation and maintenance of average EO of the alternate product as per policy.”

M/s Gopsons Papers Limited, New Delhi.

01/36/218/164/AM- 16/EPCG-I 38 EPCG authorization s issued from AM-05 to AM-13. Acceptance of installation certificate issued by chartered engineer instead of central excise. submission of the party that they are manufacturing two types of products one of Chapter 48 – printed papers labels (which is excisable) and second one of Chapter 49 – printed books & other printed papers products (which is non-excisable goods). They have imported the capital goods under the subject authorizations for manufacturing and export of non-excisable goods; therefore, they had obtained the installation certificates from Chartered Engineer instead of Central Excise.

relaxation under Para 2.58 of FTP 2015-20 to allow acceptance of installation certificate issued by chartered engineer instead of Central Excise authority subject to:

i. Payment of composition fee of Rs. 5000/- for each authorization; and ii. Submission of verification certificate from Central Excise authority that the capital goods are installed in their factory/premises.

M/s Kalyan Aluminium Pvt. Ltd., Bhilwara.

01/36/218/64/AM- 17/EPCG-I 1330001798 dated 10.03.2008 EOP and extension of EOP for 2 years.
fulfilled 8.69% EO during the original EOP due to worldwide recession. Now, they have export orders in hand and are confident to fulfil the EO within extended EOP.

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

a) the prescribed time period. This composition fee on duty saved amount in proportion to the shortfall at the end of first block in 5.8.3 of HBP 2004-09; and
payment of composition fee equal to 2% of proportionate duty saved

extension sought in terms of HBP 2004-09, as the party could not apply to RA within the prescribed time period.

M/s Concast Steel & Power Limited, Kolkata

01/36/218/178/AM- 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 i) Extension of block wise EOP. ii) Condonation of procedural lapse of not mentioning EPCG Authorization Numbers on the shipping bills in respect of EPCG authorization No. 0230002601 dated 06.09.2007, 0230002713 dated 24.10.2007. The Committee noted that earlier the case was placed before the EPCG Committee meeting held on 19.06.2015 wherein 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 with directions that the party may get a letter alongwith details of shipping bills from Customs stating that goods exported by them is “Pig Iron”.
51. M/s Duropack Limited, New Delhi

01/36/218/40/AM- 11/EPCG-I 0530130652 dated 01.11.1999 i. Condonation of not mentioning the name, EPCG authorization number and date on ARE- 1/Shipping bills. ii. Condonation of 1.3% shortfall in EO fulfillment. iii. To allow export against third party not mentioning EPCG authorization no. and date on excise invoice against form H. iv. Condonation of installation certificate on the basis of letter to Excise Department. The Director of the company appeared before the Committee and submitted that their unit is registered with central excise and that they have completed their export obligation partly through direct exports and also through third party exports in the extended period granted to them under BIFR provisions. The supplies to third parties have been made against ARE I form as well as against Form ‘H’ and the same can be correlated with the shipping bills filed towards fulfilment of export obligation.

and decided to get the claim of the party verified by the concerned Jurisdictional Central Excise Authority that the supply of goods against ARE 1 and Form ‘H’ have actually been made to the ultimate exporter and that the shipping bills are not free shipping bills.

Representative of the DoR was accordingly requested to do the needful. The case was, therefore, deferred.

DG = Director General FTP = Foreign Trade Policy HBP v1 = Handbook of Procedure Vol. I EO = Export Obligation EOP = Export Obligation Period EPCG = Export Promotion Capital Goods RA = Regional Authority BG = Bank Guarantee FFE = Free Foreign Exchange IEC = Importer-Exporter Code DOR = Department of Revenue RCMC = Registration-cum-Membership Certificate.

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