DGFT Minutes

F.No. 01/36/218/110/AM-21/EPCG MINUTES OF 7TH MEETING OF AM-21 OF THE EPCG COMMITTEE HELD UNDER THE CHAIRMANSHIP OF Shri S.B.S. REDDY, ADDITIONAL DIRECTOR GENERAL OF FOREIGN TRADE AT 2.15 PM ON 14.1.2021 I. The meeting was initially scheduled at 3.00 pm on 14.1.2021. It was rescheduled to 2.15 pm on 14.1.2021. II. The meeting was held at 2.15 pm on 14.1.2021 through Video Conferencing mode on Cisco webex cyber meeting app due to Covid-19 restrictions (Meeting Number: 176 839 9916) III. Following officers attended the meeting: i. Shri Rajbir Sharma, Joint Director General of Foreign Trade, DGFT ii. Shri Chandan Kumar, OSD, Department of Revenue iii. Shri Indrajeet Yadav, DIA, Ministry of Steel iv. Shri Shobhit Gupta, Deputy Director General of Foreign Trade, DGFT

IV. The Committee deliberated upon all the cases and following decisions were taken:- Sl. No . Firm’s Name and file Numbers EPCG Authorisat ion no. Subject Decision of the Committee

1. Vintech Industries Pvt. Ltd, Thane 01/36/218/3 28/AM- 20/EPCG 083000441 9 dated 02.08.2011 Request for block wise extension in EOP, (b) Second extension in EOP beyond two years and (c) acceptance of shipping bills under Reward Scheme (MEIS) without mentioning the EPCG license no. and date – in respect of EPCG authorisation No. 0830004419 dated 02.08.2011. The Committee deliberated upon the case and decided to defer it and call for additional information from RA before taking a decision in the matter.

isation No. 0830004419 dated 02.08.2011. The Committee deliberated upon the case and decided to defer it and call for additional information from RA before taking a decision in the matter. 2. MWN Press, Chennai 043001101 9 dated 23.03.2012 Request for extension of EOP in respect The party seeks extension for 2 years against the subject EPCG authorisation issued under the Zero

01/36/218/9 3/AM- 21/EPCG of EPCG Authorization no. 0430011019 dt. 23.03.2012. duty EPCG Scheme. The Committee noted that even after more than eight years of obtaining subject EPCG authorisation the party has not been able to fullfill the Export Obligation. The Committee deliberated upon the case and decided to reject it as there is no merit in the request. 3. CMS Associates Pvt. Ltd., New Delhi 01/36/218/9 8/AM- 21/EPCG 053017154 7 dated 28.12.2017 Request for Re- fixation of Average Export Obligation in respect of EPCG Authorization No. 0530171547 dt. 28.12.2017. The party has requested for re- fixation in the annual average export obligation due to recession in the international market and falling exports. The Committee deliberated upon the case and decided to reject it as there is no merit in the request. 4. Aggarwal Rice & General Mills, Muktsar 01/36/218/2 61/AM- 19/EPCG-I i. 30300045 59 dated 18.09.200 8 ii. 30300115 58 dated 06.09.201 3 Request for consideration of free shipping bills (Rice exports) towards fulfillment of E.O. against EPCG License nos. 3030004559 dated 18.09.2008 and 3030011558 dt.

ated 06.09.201 3 Request for consideration of free shipping bills (Rice exports) towards fulfillment of E.O. against EPCG License nos. 3030004559 dated 18.09.2008 and 3030011558 dt. 06.09.2013. The party has requested for consideration of free shipping bills towards fulfilment of EO against the subject EPCG authorisations. The Committee deliberated upon the case and observed that mentioning of EPCG License No. on the shipping bills is necessary and the party has not given any meritorious reason to consider their request for condonation of this procedural lapse. The Committee decided to reject the request of the party, being devoid of merit. 5. Satva Jewellery and Chandigarh 01/36/218/1 06/AM- 21/EPCG 223000104 5 dated 26.11.2008 Request to consider 100% export by Group Company towards fulfillment of export obligation in respect of EPCG Authorization no. 2230001045 dt. 26.11.2008. The party has requested for consideration of 100% export by Group Company towards fulfilment of export obligation in respect of EPCG Authorisation No. 2230001045 dated 26.11.2008. The Committee noted that as per Para 5.4(i) of FTP 2004-2009, upto 50% of export obligation can be fulfilled by exports by Group Company and the firm has made zero exports during the validity of the authorisation. The Committee decided to reject the request of the party being devoid of merit. 6. Dan Hospitality India Pvt. Ltd., Bangalore i.07300154 78 dated 20.05.2016 ii.

dity of the authorisation. The Committee decided to reject the request of the party being devoid of merit. 6. Dan Hospitality India Pvt. Ltd., Bangalore i.07300154 78 dated 20.05.2016 ii. 073001547 Request for waiver of composition fee & extension of EO in respect of EPCG The party seeks waiver of composition fee for the extension in export obligation period against the subject EPCG authorisations issued under zero duty EPCG Scheme on the grounds that their exports have been

01/36/218/8 6/AM- 21/EPCG 9 dated 20.05.2016 iii.0730015 541 dated 13.06.2016
iv. 073001607 0 dated 13.12.2016 Authorization Nos. 0730015478 dt. 20.05.2016, 0730015479 dt. 20.05.2016, 0730015541 dt. 13.06.2016 and 0730016070 dt. 13.12.2016. adversely affected by Covid-19 pandemic. The Committee observed that this matter is already under consideration by the DGFT & DoR, and therefore decided to defer the case for time being.

7. Ishaan Club and Hotels Pvt. Ltd., Mumbai 01/36/218/1 34/AM- 21/EPCG 033004165 1 dated 11.05.2015 Request for condonation of delay in installation of Capital Goods beyond stipulated time period in respect of EPCG Authorization No. 0330041651 dt. 11.05.2015 The party has requested for extension in installation of Capital Goods beyond the stipulated time period in the subject authorisation. The Committee noted that the party has submitted installation certificate from an independent Chartered Engineer.

Capital Goods beyond the stipulated time period in the subject authorisation. The Committee noted that the party has submitted installation certificate from an independent Chartered Engineer. Due to upgradation of the project, installation of capital goods has been delayed beyond the stipulated 18 months. 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 installation of capital goods, subject to payment of Rs. 5000/- per year as composition fee and further subject to the condition that any investigation/adjudication proceeding by DRI /Customs/ECA action is not contemplated/pending in respect of the subject EPCG authorisation. This has the approval of DG. 8. Everest Kanto Cylinder Limited, Mumbai 01/36/218/3 49/AM- 20/EPCG 033001609 4 dated 17.05.2007 Request for condonation of delay in CGs Installation in respect of EPCG authorization. The party has requested for extension in installation of Capital Goods beyond the stipulated time period in the subject authorisation. The Committee noted that the party has submitted installation certificate from Central Excise Department. However, due to complex nature of the Capital Goods the installation of it has been completed after prescribed 18 months. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to

the installation of it has been completed after prescribed 18 months. 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 installation of capital goods, subject to payment of Rs. 5000/- per year as composition fee and further subject to the condition that any investigation/adjudication proceeding by DRI/Customs/ECA action is not contemplated/pending in respect of the subject EPCG authorisation. 9. Vans Chemistry Pvt. Ltd., Hobli, Bangalore 01/36/218/1 11/AM- 21/EPCG 073001421 3 dated 20.02.2015 Request for condonation of violation of Para 5.04 of HBP 2015-20 in respect of EPCG Authorization No. 0730014213 dt. 20.02.2015. The Committee noted that installation of capital goods has been completed by the party however they failed to obtain prior permission for transfer of Capital Goods from concerned RA. The party has submitted re- installation certificate from an independent Chartered Engineer. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 to allow re- installation of capital goods, subject to payment of Rs. 5000/- per year as composition fee, verification by jurisdictional EPC of Customs and further subject to the condition that any investigation/adjudication proceeding by DRI/Customs/ECA action is not contemplated/pending in respect of the subject EPCG authorisation. 10.

nd further subject to the condition that any investigation/adjudication proceeding by DRI/Customs/ECA action is not contemplated/pending in respect of the subject EPCG authorisation. 10. IND Synergy Ltd., Raigarh, Chattisgarh 01/36/218/1 22/AM- 21/EPCG i. 03300172 66 dated 28.8.2007 ii. 03300219 66 dated 05.12.200 8 iii. 50300000 54 dated 10.06.201 0
iv. 50300000 15 dated 11.09.200 Request for extension of EOP. The Committee deliberated upon the case and it was observed that the 4 EPCG authorizations were taken in the year 2007 to 2009. These authorizations were obtained by the original promoters. The export obligation period was 8 years in these authorizations. It was further observed that the company accounts had turned into NPA in the year 2010-11. Bankers issued notice under SARFAESI ACT in March 2011 and initiated proceedings under Debt Recovery Tribunal (DRT) to recover dues. For all practical purposed

d into NPA in the year 2010-11. Bankers issued notice under SARFAESI ACT in March 2011 and initiated proceedings under Debt Recovery Tribunal (DRT) to recover dues. For all practical purposed

9 Banks have acquired company in the year 2011 and it was given EARC (Edelweiss Assets Reconstruction company) in the year 2014-15. In the year 2018 the new promoters acquired the company from EARC. It appears that from 2011 to 2018 the unit was not operational. As new owners requested for EO extension. It is seen that most of the years company was not in operation. Representative of DoR requested for more time to study the matter and requested to send details of the case through office Memorandum. Committee decided to defer the case and refer the matter to DoR for their comments.
11. Dazzler Confectioner y Company Private Ltd.,Mumba i 01/36/218/2 05/AM- 19/EPCG 033002784 4 dated 19.11.2010 Request for 1 year extension of EO. The Committee deliberated upon the case and it was observed that the EPCG authorisation was issued with 8 year EO period. This company was promoted by a foreign national. Company was in operation till July 2016 and exported to the tune of USD 510423/- Due to dispute with land lord of the premises, and resulting court case, Thereafter, they shifted to new place and production started only in the year December 2019. Due to COVID pandemic their exports were also affected in the year 2020. They have requested for EO extension.

r, they shifted to new place and production started only in the year December 2019. Due to COVID pandemic their exports were also affected in the year 2020. They have requested for EO extension. Representative of DoR requested for more time to study the matter and requested to send details of the case through office Memorandum. Committee decided to defer the case and refer the matter to DoR for their comments.
12. Ankur Udyog Limited.,Var anasi 01/36/218/1 35/AM- 21/EPCG i. 15300009 12 dated 30.11.201 2 ii. 15300009 19 dated 04.12.201 2 iii. 15300010 08 dated Request for extension of EO. The party seeks extension in export obligation period due to low demand/consumption of man- made yarn which resulted in decline in exports. They are also adversely affected by Covid-19 pandemic and are facing business hardships. The Committee observed that EO extension due to COVID is already under consideration by the DGFT &

s. They are also adversely affected by Covid-19 pandemic and are facing business hardships. The Committee observed that EO extension due to COVID is already under consideration by the DGFT &

27.08.201 3 iv. 15300010 09 dated 27.08.201 3 v. 15300006 20 dated 18.01.201 0 vi. 15300006 34 dated 21.04.201 0 DoR, and therefore decided to defer the case for time being.
13. Toughglass India Pvt. Ltd., Bangalore
01/36/218/1 43/AM- 21/EPCG 103000106 6 dated 31.01.2007

Request for extension of EOP. The party has requested for regularisation of exports made by them after the expiry of the extended export obligation period and further extension in export obligation period up to 29.01.2021. The Committee noted that the party seeks further extension against the subject EPCG authorisation issued under 3% concession duty EPCG Scheme. The Committee noted that even after more than ten years of obtaining subject EPCG authorisation the party has not been able to fulfill the Export Obligation. The Committee deliberated upon the case and decided to reject it as there is no merit in the request. 14. Reliance Industries Ltd., Mumbai 01/37/218/2 7/AM- 19/EPCG-II i. 033004028 4 dated 25.11.2014 ii. 033004050 6 dated 18.12.2014

Request for extension in the installation of the capital goods beyond stipulated period.

01/37/218/2 7/AM- 19/EPCG-II i. 033004028 4 dated 25.11.2014 ii. 033004050 6 dated 18.12.2014

Request for extension in the installation of the capital goods beyond stipulated period. The party has requested for extension in the installation of their Capital Goods beyond the stipulated period up to 31.12.2021 due to large scale of their project, its complexity and size of the project. The Committee noted that the party had earlier applied for the same subject in the subject EPCG authorisations and EPCG Committee had approved their request for a period upto 20.9.2020. The Committee decided that it will consider the request of the party for further extension once the installation of the Capital Goods is completed.

15. Reliance Industries Ltd., Mumbai
    01/36/218/1 38/AM- 21/EPCG 21 EPCG Authorizati ons Request for condonation of delay in the installation of the capital goods beyond stipulated time period. The party has requested for extension in the installation of their Capital Goods beyond the stipulated period up to 31.12.2021 due to large scale of their project, its complexity and size of the project. The Committee noted that the subject authorisations have been obtained by the party during the period 2016 and 2019. The validity of the authorisations has not expired. The Committee decided that it will consider the request of the party for further extension once the installation of the Capital Goods is completed.

ty of the authorisations has not expired. The Committee decided that it will consider the request of the party for further extension once the installation of the Capital Goods is completed. 16. Raia Jewels Pvt Ltd., Mumbai 01/36/218/1 39/AM- 21/EPCG 033004816 5 dated 21.11.2017 Request for regularization of excess duty credit utilized within 10%. The party has requested to allow regularization of late payment of additional fee to cover excess imports. The Committee noted that in this regard, para 5.16 (a) of HBP 2015-20, as amended, provides that if authorization issued has been utilized for import of goods in excess of duty saved amount indicated on the authorization by not more than 10%, the RA may accept additional fee to cover excess imports effected, in terms of duty saved amount, even beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorization. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 for condonation of procedural lapse of delay of more than a month in payment of fee for excess duty saved amount as envisaged in the

para 5.16(a) of HBP 2015-20, subject

to payment of composition fee of Rs. 5000/- per year per authorisation and to the condition that the excess utilization is not more than 10% of duty saved mentioned in the subject EPCG authorisations. The party is also required to pay an additional composition fee of Rs. 5,000/- per authorisation for each year of delay beyond the expiry of the period of

two years of the excess import taking place. 17. Vanesa Cosmetics,N ew Delhi 01/36/218/1 12/AM- 21/EPCG 053016883 0 dated 21.10.2016 Request for regularisation of excess duty credit utilized within 10% on EPCG License No. 0530168830 dt. 21.10.2016. The party has requested to allow regularization of late payment of additional fee to cover excess imports. The Committee noted that in this regard, para 5.16 (a) of HBP 2015-20, as amended, provides that if authorization issued has been utilized for import of goods in excess of duty saved amount indicated on the authorization by not more than 10%, the RA may accept additional fee to cover excess imports effected, in terms of duty saved amount, even beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorization. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 for condonation of procedural lapse of delay of more than a month in payment of fee for excess duty saved amount as envisaged in the

para 5.16(a) of HBP 2015-20, subject

to payment of composition fee of Rs. 5000/- per year per authorisation and to the condition that the excess utilization is not more than 10% of duty saved mentioned in the subject EPCG authorisations. The party is also required to pay an additional composition fee of Rs. 5,000/- per authorisation for each year of delay beyond the expiry of the period of two years of the excess import taking place. 18. Sansons Texfab Industries, 033003246 5 dated 23.04.2012 Request for regularisation of excess duty The party has requested to allow regularization of late payment of additional fee to cover excess

Mumbai 01/36/218/1 09/AM- 21/EPCG credit utilized within 10% on EPCG Licence No. 0330032465 dt. 23.04.2012. imports. The Committee noted that in this regard, para 5.16 (a) of HBP 2015-20, as amended, provides that if authorization issued has been utilized for import of goods in excess of duty saved amount indicated on the authorization by not more than 10%, the RA may accept additional fee to cover excess imports effected, in terms of duty saved amount, even beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorization. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 for condonation of procedural lapse of delay of more than a month in payment of fee for excess duty saved amount as envisaged in the

para 5.16(a) of HBP 2015-20, subject

to payment of composition fee of Rs. 5000/- per year per authorisation and to the condition that the excess utilization is not more than 10% of duty saved mentioned in the subject EPCG authorisations. The party is also required to pay an additional composition fee of Rs. 5,000/- per authorisation for each year of delay beyond the expiry of the period of two years of the excess import taking place. 19. Veekay Surgicals Pvt. Ltd., CLA New Delhi 01/36/218/1 28/AM- 21/EPCG 053013572 0 dated 19.02.2004 Request for regularisation of excess duty credit utilized within 10%. The party has requested to allow regularization of late payment of additional fee to cover excess imports. The Committee noted that in this regard, para 5.16 (a) of HBP 2015-20, as amended, provides that if authorization issued has been utilized for import of goods in excess of duty saved amount indicated on the authorization by not more than 10%, the RA may accept additional fee to cover excess imports effected, in terms of duty saved amount, even

beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorization. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 for condonation of procedural lapse of delay of more than a month in payment of fee for excess duty saved amount as envisaged in the

para 5.16(a) of HBP 2015-20, subject

to payment of composition fee of Rs. 5000/- per year per authorisation and to the condition that the excess utilization is not more than 10% of duty saved mentioned in the subject EPCG authorisations. The party is also required to pay an additional composition fee of Rs. 5,000/- per authorisation for each year of delay beyond the expiry of the period of two years of the excess import taking place. 20. Honda Cars India Ltd., Noida 01/36/218/5 6/AM- 21/EPCG 053017122 8 dated 02.11.2017 Request for regularisation of excess duty credit utilized within 10% on EPCG License No. 0530171228 dt. 02.11.2017. The party has requested to allow regularization of late payment of additional fee to cover excess imports. The Committee noted that in this regard, para 5.16 (a) of HBP 2015-20, as amended, provides that if authorization issued has been utilized for import of goods in excess of duty saved amount indicated on the authorization by not more than 10%, the RA may accept additional fee to cover excess imports effected, in terms of duty saved amount, even beyond one month but within two years of the excess import taking place, subject to payment of composition fee of Rs. 5000/- per authorization. The Committee deliberated upon the case and decided to recommend to DG for relaxation under Para 2.58 of FTP 2015-20 for condonation of procedural lapse of delay of more than a month in

payment of fee for excess duty saved amount as envisaged in the

para 5.16(a) of HBP 2015-20, subject

to payment of composition fee of Rs. 5000/- per year per authorisation and to the condition that the excess utilization is not more than 10% of duty saved mentioned in the subject EPCG authorisations. The party is also required to pay an additional composition fee of Rs. 5,000/- per authorisation for each year of delay beyond the expiry of the period of two years of the excess import taking place. 21. Saraf Infraprojects Ltd., Kolkata 01/36/218/6 7/AM- 21/EPCG 023000607 7 dt. 07.12.2010 + 49 Licenses Request for grant and exemption from fulfilling the Export Obligation. The party vide letter dated 9.8.2020 has filed an application before the EPCG Committee for grant of relief and exemption under the para 2.58 of the FTP from fulfilling the EO imposed and issue of direction to RA, Kolkata to issue them Export Obligation Discharge Certificate(EODC) against the fifty EPCG authorisations issued to them by the RA, Kolkota. The Committee noted that the Hon’ble High Court of Calcutta vide order dated 10.9.2020 in the W.P.A. 6522 of 2020 IA No. CAN 1/2020 (Old No. CAN 5253/2020) in the case of M/s. Saraf Infra projects Limited & Anr. v/s. The Principal Commissioner of Customs (Port) & Ors. has, inter-alia, directed asunder :-
“..Since the application is pending. I am not going into the merits of the case. The EPCG committee is requested to consider the application filed by the petitioner on 9th August, 2020 within four weeks from today.

is pending. I am not going into the merits of the case. The EPCG committee is requested to consider the application filed by the petitioner on 9th August, 2020 within four weeks from today. The committee is also requested to pass a reasoned order after giving opportunity of hearing, not only to the petitioner but also to the customs authority, if required.”

In compliance of the order dated 10.9.2020, the firm was requested vide letter/e-mail dated 18.9.2020 to send the details of the representative who could attend hearing through teleconferencing. Notice of hearing was later sent on 25.9.2020 for the meeting of EPCG Committee to be held on 1.10.2020. In response, the party informed vide an e-mail dated 29.09.2020 that Shri Rajendra Singhvi, Advocate will be representing them during the scheduled hearing on 01.10.2020. Later, the counsel for the party informed vide e-mail dated 30.9.2020 that the record is quite bulky and as a result it is requested to adjourn the matter for minimum two weeks. It was requested to fix any date once the regular hearing starts. The meeting of the EPCG Committee was postponed to 5.10.2020 and later further postponed to 14.10.2020. Notice of regular hearing for attending the meeting on 14.10.2020 was sent to the counsel of the party vide an e- mail dated 9.10.2020.

to 5.10.2020 and later further postponed to 14.10.2020. Notice of regular hearing for attending the meeting on 14.10.2020 was sent to the counsel of the party vide an e- mail dated 9.10.2020. The counsel of the party informed vide an e-mail dated 13.10.2020 as under :

• “A fire took place at the premises of Mr Niket Saraf, the instructing person, on 8.10 at Kolkata and the same was widely reported in local newspaper. Mr Niket Saraf is under tremendous trauma and as a result could not come to Delhi to instruct me and also to attend the personal hearing. Because of such unforeseen circumstances beyond our control, I request you to adjourn the matter for a week.”
  The Committee after deliberation decided to defer the case. The case was again considered in the EPCG Committee Meeting dated 06.11.2020. The advocate of M/s Saraf Infraprojects Ltd. informed that

he has to submit large number of documents related to the case to the EPCG Committee before it decides upon the case. In a virtual meeting, it will not be possible for him to submit those documents. On the request of the advocate of the party, it was decided to defer the case for holding a physical meeting at another date. The documents have been received from the party. As these documents are bulky, the Committee decided to defer the case for consideration in the next meeting of the EPCG Committee.

her date. The documents have been received from the party. As these documents are bulky, the Committee decided to defer the case for consideration in the next meeting of the EPCG Committee.
The advocate of the firm vide his e- mail dated 21.12.2020 requested that the matter may be fixed for placing in the EPCG Committee in the 3rd week of January, 2021 as he is travelling
out of Delhi. The Committee decided to defer the case as the representative of the firm could not make him available to attend the meeting. The Committee decided to consider the case in the next EPCG Committee Meeting. 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, B.O.E.=Bill of Entry, 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.