IN FORCE EPCG Committee EPCG 2016-10-26

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 26.10.2016.

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 V.K. Kohli Director, O/o Textile Commissioner.
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 26.09.2016 were confirmed.

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

Sl. No. Firm’s Name and Numbers EPCG Authorisatio n No.
Subject Decision of the Committee 1. M/s Aradhna Fabrics Pvt. Ltd., Ludhiana.

01/36/218/411/AM- 14/EPCG-I 3030002655 dated 13.04.2007 Extension of block-wise EOP. The Committee took into account the submission of the party that a major fire incidence occurred in their factory premises which destroyed the garment unit completely. They got insurance claim at the end of October, 2010 and then installed new machines and started production again.

submission of the party that they could not fulfil the block-wise EO but have fulfilled 100% EO in the second block of the original EOP after the resumption of production.

The Committee deliberated upon the case and decided to recommend to DG for 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 short fall at the end of each block in terms of the provisions of

Para 5.8.3 of HBP 2004-09.

This has the approval of DG.
2. M/s Ajay Knitwears & Fabrics (P) Ltd., Ludhiana.

01/36/218/100/AM- 17/EPCG-I 3030006226 dated 27.01.2010 EOP. fulfill the EO of 1st block EOP due to non- availability of export orders.

The Committee noted that the EOP of the subject authorization is valid up to 26.01.2018.

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

Para 5.8.3 of HBP 2009-14.

M/s Bharat Expo International, Gurgaon.

01/36/218/52/AM- 17/EPCG-I 0530162565 dated 31.03.2014 Condonation of delay in obtaining the installation certificate from Central Excise. The Committee noted that the party has fulfilled 125% EO against the subject authorization within the original EOP.

The Committee observed that the party had obtained the installation certificate from Chartered Engineer on time. Further, they have submitted the installation certificate from Central Excise after a delay beyond 18 months. 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 Arisudana Industries Limited, Ludhiana.

01/36/218/111/AM- 17/EPCG-I 3030003650 dated 24.01.2008 Condonation of delay in submission of installation certificate from Central Excise. The Committed noted that they have fulfilled their entire EO during the original EOP.

submission of the party that a fire in the factory destroyed some documents, including the installation certificate obtained from the Central Excise Department. Thereafter, they approached the Central Excise again and have got the installation certificate reissued from Central Excise on 12.07.2016, showing the date of installation as 06.01.2009.

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

M/s Deven Textile Industries Pvt. Ltd., Faridabad.

01/36/218/157/AM- 16/EPCG-I 0530143434 dated 09.04.2007 EOP. The Committee noted the party’s submission that they have fulfilled 274% EO during the 2nd block period through third party exports.

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

Para 5.8.3 of HBP 2004-09.

Third party exports 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 Balkrishna Industries Limited, Mumbai.

01/36/218/57/AM- 17/EPCG-I 0330030868 dated 19.10.2011 Permission to shift the capital goods. submission of the party that they had installed the CG at their Bhuj plant within prescribed time period and obtained the installation certificate from Central Excise. Thereafter, with the approval of RA, Mumbai they have shifted the CGs to their Bhiwadi plant and obtained the installation certificate from Central Excise.

Thereafter, they have decided to shift the CGs again to their Bhuj Plant as it has become more economical to produce the export item from there as Bhuj plant is much closer to Mundra Port and this will facilitate them to export the resultant product without losing time in transport of export product. Thus saving considerable logistics cost for the company. The party has furnished copies of IEC & RCMC wherein the addresses of both the plants are mentioned.

allow the shifting of capital goods from their unit at Bhiwadi to unit at Bhuj.

The party shall submit fresh installation certificate to RA within 6 months from the date of installation of capital goods at the new unit.

M/s DA Rubber Industries Limited, Delhi (formerly known as M/s Ralson Industries Ltd.).

01/36/218/210/AM- 16/EPCG-I 0530142516 dated 28.11.2006 i) Permission to install the CGs in the premises of the supporting manufacturer (Noslar International Limited);
ii) Extension of block- wise EOP and extension of EOP for 2 years; and
iii) Waiver of annual average EO in respect of EPCG authorization No. 0530142516 dated 28.11.2006 issued to M/s Ralson Industries Ltd. submission of the party that the company was registered with BIFR on 31.03.2008. However, Union Bank of India, on 19.06.2009 had served notice to them under Section 13(2) and took possession of the secured assets of their company under Section 13(4) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act,2002 (SARFAESI) on 03.09.2009.

The Committee noted that the request of the party was placed before the EPCG Committee meeting held on 30.05.2016, wherein it was decided to defer the case with directions to the party to obtain a certificate from the concerned central excise authority certifying that the capital goods are in the company’s physical possession.

The Committee further noted that the party, vide their letter dated 05.09.2016, has submitted a copy of central excise certificate dated 01.09.2016 certifying that the second hand capital goods machinery imported under the authorization are in the possession of M/s DA Rubber Industries Ltd. (Formerly known as Ralson Industries Ltd.) at Plot No. 3, New Industrial Area, Mandideep Distt. Raisen (M.P.) and lying uninstalled in knocked down / semi knocked down condition.

The company has now requested to shift /install the capital goods to their supporting manufacturer M/s Noslar International Limited, at Plot No. 2, New Industrial Area, Mandideep, Raisen, Madhya Pradesh till the completion of their EO.

allow the shifting of capital goods from Plot No. 3, New Industrial Area, Mandideep (Madhya Pradesh) to the factory/premises of supporting manufacturing i.e. M/s Noslar International Limited, Plot No. 2, New Industrial Area, Mandideep, Raisen, Madhya Pradesh.

Further, the Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20to allow:

a) 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; 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 2004-09, as the party could not apply to RA within the prescribed time period.

The request for waiver from maintenance of Annual Average was rejected by the Committee.

M/s Equinox Meditech Pvt Ltd., New Delhi

01/36/218/120/AM- 17/EPCG-I 0530160234 dated 24.01.2013 Permission to shift the capital goods

submission of the party that they had imported the capital goods to be installed at the rented factory address at 812/F-45, Industrial Area Bhiwadi, Distt. Alwar, Rajasthan and obtained the installation certificate from Chartered Engineer. Now, they have obtained another plot at H1- 722, Industrial Area Bhiwadi, District – Alwar, Rajasthan where they want to shift the CGs. The party has furnished the copies of IEC & RCMC showing the address where the CGs are proposed to be shifted.

allow the shifting of capital goods from 812/F-45, Industrial Area Bhiwadi, Distt.

Alwar, Rajasthan to H1-722, Industrial Area Bhiwadi, District –Alwar, Rajasthan. The party shall submit fresh installation certificate to RA within 6 months from the date of installation of capital goods at the new unit. 9. M/s Hissar Spinning Mills Ltd., Hisar.

01/36/218/94/AM- 17/EPCG-I 3330000987 dated 24.04.2008 Extension of EOP for 2 years. fulfilled 64.44% EO during the original EOP. Now they have export orders in hand and are confident to fulfil the remaining EO within extended EOP.

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 Kalgidhar Industrial Corporation, Ludhiana.

01/36/218/186/AM- 15/EPCG-I 3030006108 dated 21.12.2009 Condonation of delay in submission of installation certificate. fulfilled their entire EO within original EOP.

submission of the party that they had obtained the installation certificate from Chartered Engineer in time. Further, they have also obtained an installation certificate from the Central Excise which is beyond prescribed time limit.

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 Delton Cables Limited, New Delhi.

01/36/218/118/AM- 17/EPCG-I 0530145497 dated 30.01.2008 Acceptance of installation certificate issued by chartered engineer instead of Central Excise. submission of the party that they had obtained the installation certificates from Chartered Engineer instead of Central Excise. They also approached Central Excise Authorities for issuance of installation certificate, which was denied to them.

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 India Forge & Drop Stampings Ltd.

01/36/218/131/AM- 16/EPCG-I 0530155219 dated 04.04.2011 EOP. fulfilled their entire EO during the second block period.

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

Para 5.8.3 of HBP 2009-14.

M/s J.S. Furnishing (P) Ltd., New Delhi.

01/36/218/78/AM- 16/EPCG-I 0530140444 dated 15.02.2006 Condonation of non- submission of installation certificate. already deposited Custom duty and interest against the subject authorization in terms of para 5.14 of HBP 2004-09.

and decided to recommend to D.G. for 2015-20 to allow condonation of non- submission of installation certificate subject to submission of verification report from Central Excise Authority that the capital goods are in their possession. However, this will be subject to payment of composition fee of Rs. 5000/-.

M/s Futureworks Media Limited, Mumbai.

01/36/218/104/AM- 17/EPCG-I 0330020152 dated 30.05.2008 EOP. fulfilled their entire EO during the second block period.

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

Para 5.8.3 of HBP 2009-14.

M/s Divyalakshmi Textiles (P) Ltd., Tamilnadu.

01/36/218/128/AM- 17/EPCG-I 3530001611 dated 24.03.2006 Condonation of procedural lapse of mentioning wrong EPCG authorization Number in shipping bills. fulfilled 99.38% EO against the subject EPCG authorization.

submission of the party that vide shipping bills Nos. 3422245 dated 27.04.2011 and 4777890 dated 29.07.2011, the exports

were originally made towards fulfilment of EO against the subject authorization. But inadvertently they endorsed wrong EPCG authorization in these two shipping bills.
They have also given an undertaking that the above mentioned shipping bills have not been taken into account for fulfilment of Specific EO or maintenance of annual average EO against any other EPCG authorization obtained by them.

2015-20 to condone the procedural lapse of inadvertently mentioning wrong authorisation number while filing shipping bills, subject to the condition that there is no double counting of exports/Shipping Bills and the exports made are after issuance of the EPCG authorization no. 3530001611 dated 24.03.2006.

The Committee further recommended imposition of a composition fee of Rs. 200/- on each such shipping bill where wrong EPCG authorization number has been endorsed and which are being counted for fulfilment of EO.

M/s Emerson Process Management Pvt. Ltd., Chennai.

01/36/218/126/AM- 17/EPCG-I 0430003300 dated 03.01.2006 Condonation of procedural lapse for mentioning wrong EPCG authorization Number in shipping bills. fulfilled 96.18% against subject EPCG authorization.

submission of the party that they have inadvertently endorsed EPCG authorization no. 0430002592 in their shipping bills instead of EPCG authorization no. 0430003300 dated 03.01.2006. However they did not include these shipping bills for redemption of authorization no. 0430002592 and obtained the EODC for the same from RA, Chennai.

anddecided to recommend to DG for 2015-20 to condone the procedural lapse of inadvertently mentioning wrong authorisation number while filing shipping bills, subject to the condition that there is no double counting of exports/Shipping Bills and the exports made are after issuance of the EPCG authorization no. 0430003300 dated 03.01.2006.

M/s Jaq-cad Tex Fab (India) Pvt. 0330019308
dated Extension of block wise EOP and extension of

Ltd., Mumbai.

01/36/218/70/AM- 17/EPCG-I 04.03.2008 EOP one year. make any exports during the original EOP due to non-availability of export order. 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 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
b) extension of EOP for 1 year 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 Crosslay Remedies Limited.

01/36/218/186/AM- 16/EPCG-I 0530145816 dated 14.03.2008
0530146693 dated 17.07.2008
0530147121 dated 09.09.2008
0530147159 dated 11.09.2008 EOP. not fulfilled any EO during the original EOP because of the following:

i) Reshuffling of management wherein the overall operations have been taken over by the M/s Max Health Care Group. ii) Misplacement of original authorization and other relevant documents.

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

Para 5.8.3 of HBP 2004-09 and 2009-14.

M/s Honda Motorcycle and Scooter India Pvt. Ltd.

01/36/218/76/AM- 17/EPCG-I 0530165422 dated 17.07.2015
0530166698 dated 07.01.2016 i. Permission for scrapping of machines damaged beyond repair. ii. Waiver from submission of installation certificate of and decided to defer it for further examination.

Capital Goods. 20. M/s Airports Authority of India, New Delhi.

18/86/AM-17/P-5

Issuance of EPCG authorization for import of Air crash fire tenders. The Committee noted that as per the comments furnished by DIPP the import item Air Crash Fire Tenders are having high capacity (10000 litres) and are high pressure fire tenders with output of upto 9000 litres of water per minute at 14 bar pressure. Such high capacity and high pressure fire tenders are necessary for safety of human life and Air Craft.

and decided to allow import of 50 numbers of Air crash fire tenders (ACFTs) subject to condition that ACFTs shall be exclusively used in the Airport premises only and installed as per the list furnished by them.
21. M/s Malu Paper Mills Limited, Nagpur.

18/57/AM-17/P-5 0330014747 dated 15.01.2007
0330014503 dated 27.12.2006 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 and it was decided to defer it as representative of DOR stated that they need to call for comments regarding a pending DRI investigation against the party.

The Committee further noted that the comments from DOR are still awaited. It was accordingly decided to defer the case.
22. M/s Lifelong Meditech Pvt. Ltd. Gurgaon.

18/212/AM-16/P-5 0530137695 dated 24.12.2004
0530138846 dated 13.06.2005
0530140191 dated 04.01.2006
0530142185 dated 19.10.2006 Condonation from submission of installation certificate or acceptance of audit certificate instead of installation certificate. submission of the party that their entire record along with equipments / plants and soft copies of the computerized record has been completely burnt down on 27.05.2012 due to massive fire at Plot No. 23, Sector – 5, IMT Manesar, Distt. Gurgaon.

fulfilled 100% EO in respect of 03 EPCG authorizations and fulfilled 80.74% EO against EPCG authorization No. 0530140191 dated 04.01.2006.

relaxation under Para 2.58 of FTP2015-20 to allow acceptance of audit certificate instead of installation certificate.

M/s Sri MVR Cotton Oil Mills Pvt. Ltd, Guntur.

01/37/218/252/AM- 17/EPCG-II 0930004404 dated 18.09.2008
0930005162 dated 23.09.2009 0930004406 dated 18.09.2008 0930004405 dated 18.09.2008 Extension of block- wise EOP and extension of EOP for 2 years. not made any export till date and also not submitted a copy of valid export order. The Committee, therefore, decided to defer the case with directions to call for copy of valid export orders.

M/s Worldwide Printing Company, New Delhi.

0530147025 dated 28.08.2008 EOP. The Committee noted that he party could not fulfill their export obligation during the original Export Obligation Period.
Presently, they have sufficient export

01/37/218/112/AM- 17/EPCG-II orders in hand and are confident to fulfill the EO within the extended EOP.

relaxation under Para

2.58 of FTP2015-20 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 period.

M/s Sankeshwar Industries Pvt. Ltd, Ludhiana.

01/37/218/144/AM- 14/EPCG-II 3030002317 dated 05.01.2007 3030002386 dated 24.01.2007 Extension of block- wise EOP. fulfilled their entire EO during the second Block period in respect of both the EPCG authorizations.

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

Para 5.8.3 of HBP 2004-09.

M/s Sparkon Textiles, Maharashtra

01/37/218/233/AM- 16/EPCG-II 3130002588 dated 20.07.2007 Extension of EOP for one year. The Committee noted that the party could not fulfill their export obligation during the validity of the Export Obligation Period.
Presently, they have sufficient export orders in hand and are confident to fulfil the EO within the extended EOP.

relaxation under Para 2.58 of FTP 2015-20 to al l ow 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 SKF Technologies (India) Pvt. Ltd, Ahmadabad

01/37/218/150/AM- 17/EPCG-II 0730007671 dated 12.12.2008 0730008704 dated 18.03.2010 i. Extension of block-wise EOP; ii. Condonation of non-maintaining year wise annual average EO. The Committee noted that the annual Average Export Obligation fixed against the subject authorization is Rs.13,51,88,527/-. However, there is a shortfall in average EO in the years 2009-10, 2011-12, 2012-13 and 2015-16. The party has maintained excess average EO in the years 2010-11, 2013-14 and 2014-15 to offset

the shortfall in annual average EO.

Further, Committee noted that the party
has maintained the block wise annual average EO but has not maintained block wise Specific Export Obligation in the first block period.

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 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.

(b) Condonation from maintenance of Annual Average EO as the firm has covered the shortfall in Average EO by excess exports in other years.

M/s Shriram Pistons & Rings Ltd, New Delhi

01/37/218/155/AM- 17/EPCG-II 0530146544 dated 30.06.2008 EOP . fulfilled their entire EO during the second block period.

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 2009-14.

M/s Wyan Industries Pvt. Ltd, New Delhi.

01/37/218/01/AM- 17/EPCG-II 0530153663 dated 08.10.2010 EOP. The Committee noted that the party could not fulfill their export obligation during the validity of the Export Obligation Period.
Presently, they have sufficient export orders in hand and are confident to fulfill the EO within the second block of EOP.

M/s Shiv Shakti Thermo Pvt. Ltd, 1530000683 dated EOP. The Committee took into account

Sant Kabir Nagar (U.P.)

01/37/218/157/AM- 17/EPCG-II 07.03.2011 fulfill their entire EO because the markets, worldwide were very depressed. Presently, they have sufficient export orders in hand and are confident to fulfill the EO within the second block of EOP.

wise EOP, as the party could not apply to RA within the prescribed time period. This composition fee on duty saved amount in

Para 5.8.3 of HBP 2009-14.

M/s Ultima Switchgear Pvt. Ltd., New Delhi.

01/37/218/240/AM- 16/EPCG-II 0530142288 dated 01.11.2006 0530142526 dated 29.11.2006 Extension of EOP for 2 years. The Committee noted that the party could not fulfill their export obligation during the validity of the Export Obligation Period.
Presently, they have sufficient export orders in hand and are confident to fulfil the EO within the extended EOP.

2015-20 to al l ow 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 Rashleela Papers Pvt. Ltd, Jaipur

01/37/218/107/AM- 17/EPCG-II 1330002140 dated
27.05.2009 EOP. fulfilled 9 6 . 1 0 % EO during the second block period.

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 2009-14.

M/s Shri Govindaraja Textiles (P) Ltd, Tamil Nadu.

01/37/218/151/AM- 17/EPCG-II 3530003372 dated 08.08.2008 Extension of EOP for 2 years. The Committee took into the account the submission of the party that they could not fulfill export obligation during the first block of EO period due to severe recession in the international market. The Committee also noted that the party has already obtained block wise extension in EOP. Presently, they have sufficient export orders in hand and are confident to fulfil

the EO within extended EOP

M/s Rashtriya Metal Industries Ltd,- Mumbai

01/37/218/247/AM- 16/EPCG-II 0330011930 dated 08.05.2006 i. Extension of block-wise EOP. ii. Condonation of delay in installation of capital goods. fulfilled their entire EO during the second block period.

The Committee further noted that the capital goods were imported on 16.05.2006 and installed on 02.02.2012.

submission of the party that due to delay in the completion of the project and other administrative reasons the capital goods could not be installed in stipulated time.

relaxation under Para 2.58 of FTP2015-20 to allow:

(a) 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. (b) condonation of delay in installation of capital goods, subject to payment of
composition fee of Rs.5000/-.

M/s Vivimed Labs Ltd, Hyderabad

01/37/218/190/AM- 15/EPCG-II 0930003474 dated 17.09.2007 EOP. fulfilled their entire EO during the second block period.

M/s Vira Auto Components Pvt. Ltd, Ludhiana.
3030004318 dated 22.07.2008 Condonation of delay in submission of installation certificate. fulfilled their entire EO during the second block period.

01/37/218/72/AM- 17/EPCG-II

The Committee further noted that the capital goods were imported on 28.7.2008 and installed on 01.09.2009.

submission of the party that due ignorance of the provision the party had initially submitted installation certificate from chartered engineer instead of the Central Excise on 01.09.2009. The party has now submitted installation certificate issued from Central Excise authority which does not mention the date of installation but Central Excise authorities have verified the installation of the Capital Goods.

2015-20 to allow condonation of delay in installation of capital goods, subject to payment of composition fee of
Rs.5000/-.

M/s Essar Oil Limited, Mumbai.

01/36/218/130/AM- 17/EPCG-I 0330021145 dated 29.08.2008
0330022035 dated 15.12.2008
0330023114 dated 15.06.2009
0330023612 dated 18.08.2009
0330024375 dated 20.11.2009
0330025057 dated 29.01.2010
0330029938 dated 06.07.2011 Condonation of delay in installation of spares. submission of the party that they had imported various spares under the subject authorizations to maintain the main equipment in running condition. These spares got consumed during most recent turnaround which took place in September / October 2015 for a period of one month for maintenance, inspection and overhaul. The delay in installation of Capital Goods was due to the fact that the refinery operates round the clock for all the 365 days in a year and the lead time of receiving these imported spares is 5-6 months from the placement of the order as these spares are fabricated after placement of order. In addition to the lead time, it takes another 1-3 months for transportation of these items to reach the refinery site from the country of manufacture.

fulfilled 100% EO against 06 EPCG authorizations and fulfilled 91% EO in authorization no. 0330023612 dated 18.08.2009. Party has also obtained the installation certificates from Central Excise, Jamnagar in respect of all the 07 authorizations.

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/- against each authorization.

M/s Goodwill 0730004112 Regularization of

Industries, Bangalore

01/36/218/30/AM- 16/EPCG-I dated 09.05.2006 shifting of capital goods. submission of the party that they had imported the capital goods under the said authorization to be installed at B-376, Peenya 1st stage, Peenya Industrial Area, Bangalore – 560 058, which was a rented place. Subsequently, they shifted the capital goods to their own premises at C- 148, 9th Main Road, 3rd Phase, Peenya Industrial Area, Bangalore – 560 058 and IEC was amended accordingly. They also submitted the installation certificate issued by chartered engineer with the details of earlier and present installation address.

regularize the shifting of capital goods from B-376, Peenya 1st stage, Peenya Industrial Area, Bangalore – 560 058 to C- 148, 9th Main Road, 3rd Phase, Peenya Industrial Area, Bangalore – 560 058 subject to payment of composition fee of Rs. 5000/-

M/s Himtex Textiles Pvt. Ltd., Mumbai.

01/36/218/103/AM- 17/EPCG-I 0330027572 dated 20.10.2010 EOP. submission of the party that they had not made any exports in 1st block EOP due to adverse condition of the international market. They have already paid composition fees of 2% on proportionate duty saved amount on unfulfilled EO as per

Para 5.17(b) of HBP of FTP 2015-20.

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

Para 5.8.3 of HBP 2009-14.

M/s J.K. & Company, Faridabad.

01/36/218/78/AM- 17/EPCG-I 0530146342 dated 09.06.2008 EOP. The Committee observed that the request of the party was placed before the EPCG Committee meeting held on 30.08.2016, wherein it was decided to defer the case with directions to obtain a report from RA concerned informing the Committee whether party has applied for overall EOP extension in RA. The report from the RA has been received on 18.10.2016 stating that the party has approached them for extension of EOP.

fulfilled 5.60% EO within the original EOP and applied for EOP extension for two years i.e. up to 08.06.2018 in CLA, New Delhi.

The committee took into account the submission of the party that short fall in EO fulfilment had occurred due to cancellation of export orders and recession in global market.

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

Para 5.8.3 of HBP 2009-14.

M/s Bharat Aluminium Company Limited, Korba.

01/36/218/22/AM- 17/EPCG-I 0530144268 dated 06.08.2007 0530145426 dated 16.01.2008 0530144629 dated 24.09.2007 0530145661 dated 20.02.2008 0530145732 dated 29.02.2008 0530145657 dated 20.02.2008 0530144432 dated 27.08.2007 i. Extension of block-wise EOP against 04 EPCG authorizations Nos. 0530144268 dated 06.08.2007, 0530145426 dated 16.01.2008, 0530145661 dated 20.02.2008 and 0530145732 dated 29.02.2008. ii. Extension of EOP for 2 years in respect of 07 EPCG authorizations. fulfil the EO due to recession in the international market. However as per ANF2D furnished by the party they fulfilled the EO against the subject authorizations as under: Sl. No Authorization no. & date EO fulfillment as furnished in ANF-2D 1. 0530144268 dt. 06.08.2007 49% 2. 0530144432 dt. 27.08.2007 79% 3. 0530144629 dt. 24.09.2007 58% 4. 0530145426 dt. 16.01.2008 40% 5. 0530145657 dt. 20.02.2008 52% 6. 0530145661 dt. 20.02.2008 43% 7. 0530145732 dt. 29.02.2008 44%

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

Para 5.8.3 of HBP 2004-09; 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 2004-09, as the prescribed time period.

M/s Aar Vee Printers 0530144073

Limited, New Delhi.

01/36/218/207/AM- 16/EPCG-I dated 10.07.2007 EO and extension of EOP for 2 years. fulfilled 13.09% EO during the original EOP.

make any export during the original EOP due to recession in the market. At present they have export orders in hand and are confident to fulfill the EO.

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

Para 5.8.3 of HBP 2004-09; and

M/s Sabacic India Limited, Vadodara

01/37/218/187/AM- 17/EPCG-I 3430001801 dated 08.10.2010 EOP. fulfilled their entire EO during the second block period.

relaxation under Para 2.58 of FTP 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 2009-14.

M/s Tijaria Polypipes Limited, Jaipur.

01/37/218/165/AM- 17/EPCG-II 1330001895 dated 06.08.2008 EOP and extension of EOP for one year.
not made any export till date and also not submitted the copy of valid export order. defer the case with directions to call for copy of valid export orders.

M/s Thomson Press (India) Limited, Faridabad.

01/37/218/93/AM- 17/EPCG-II 0530144892 dated 31.10.2007
0530145114 dated 05.12.2007 0530145115 dated EOP. fulfilled their entire EO during the second block period in respect of all the 13 EPCG authorizations.

relaxation under Para 2.58 of FTP

05.12.2007 0530145756 dated 05.03.2008
0530145249 dated 24.12.2007 0530145301 dated 31.12.2007 0530145654 dated 20.02.2008 0530146400 dated 12.06.2008 0530146412 dated 13.06.2008 0530146413 dated 13.06.2008 0530146774 dated 30.07.2008 0530147035 dated 29.08.2008
0530147119 dated 08.09.2008 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 2004-09.

M/s SS Industrial Products, Chennai

01/37/218/219/AM- 17/EPCG-II 0430013605 dated 07.04.2014 Waiver from fulfilment of export obligation. and decided to reject the request of the party for waiver from fulfilment of Export Obligation on the grounds that there is no policy provision for waiver from EO. The party may exercise the option of exit from the EPCG scheme by paying applicable duty and interest in terms of Para 5.14 of HBPv1 2009-14. 47. M/s Pooja Enterprises, Howrah

01/37/218/47/AM- 16/EPCG-II 0230002140 dated 13.02.2007 EO and extension of EOP for 2 years. make any exports during the original EOP due to global economic slowdown. 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 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 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 2004-09, as the prescribed time period.

M/s Super Cotspin, Ludhiana.

01/37/218/109/AM- 15/EPCG-II 3030002131 dated 19.10.2006 3030002078 dated 28.09.2006 EO and extension of EOP for 2 years. 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 fulfill the EO within extended EOP.

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

M/s Caparo Engineering India Limited, Gurgaon.

01/36/218/49/AM- 17/EPCG-I 0530142399 dated 16.11.2006
0530142400 dated 16.11.2006
1130000788 dated 17.01.2007
1130000808 dated 14.02.2007
0530143980 dated 26.06.2007
0530144136 dated 18.07.2007 0530144545 dated 12.09.2007 0530147654 dated i. Condonation of delay in obtaining of installation certificate from Central Excise against 13 EPCG authorizations. ii. Condonation of delay in installation of CGs against 03 EPCG authorizations. submission of the party that they have fulfilled specific as well as average EO and applied for redemption of EPCG authorizations to concerned RAs.
However, against 13 of the EPCG authorizations they have installed all the CGs within 18 months from the date of completion of import but could obtain the installation certificate from Central Excise only after the prescribed time period of 18 months.

Further, in 03 EPCG authorizations no.1130000636 dated 12.07.2006, 0530152378 dated 21.10.2008 and 0530144944 dated 21.10.2008
there is a delay in installation of CGs beyond the prescribed time period of 18 months.

recommend to DG for relaxation

05.11.2008
0530148498 dated 25.02.2009 1130001593 dated 24.09.2009 0530150044 dated 09.10.2009
0530156323 dated 25.08.2011
0530159303 dated 18.09.2012
1130000636 dated 27.06.2006 0530152378 dated 21.10.2008
0530144944 dated 21.10.2008 under Para 2.58 of FTP 2015-20 to allow (i) condonation of delay in submission of installation certificate in 13 EPCG authorizations and (ii) condonation of delay of installation of CGs against 03 EPCG authorizations No. 1130000636 dated 12.07.2006, No. 0530152378 dated 21.10.2008 and No. 0530144944 dated 21.10.2008.

However, both the above condonations are subject to payment of composition fee of Rs. 5000/- against each authorization in respect of each condonation.

M/s Gaurav Engineers, Aurangabad.

01/36/218/170/AM- 17/EPCG-I 0330016919 dated 27.07.2007 EOP and extension of EOP for 2 years. fulfil entire EO within original EOP due to recession in the worldwide export market.
The party has informed that they have already completed 100% EO after the original EOP.

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

M/s Spectra Tools, Ramanagara.

01/37/218/198/AM- 16/EPCG-II 0730007261 dated 06.08.2008 EOP. The Committee noted that the party could not fulfill their export obligation as they have applied for a patent in India and USA for their export products which, they expect to get soon. The party is hopeful to fulfill export obligation in the extended EOP for which they may approach the RA.

EO period in this case has expired hence, the party is required to obtain EO period extension.

DGFT = Directorate General of Foreign Trade, DG = Director General, FTP = Foreign Trade Policy, HBP v1 = Handbook of Procedure Vol. I, 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, IEC = Importer-Exporter Code, DOR = Department of Revenue, IEM = Industrial Entrepreneurs Memorandum, RCMC = Registration-cum-Membership Certificate.

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