Bargaining Time
By T Harikrishnan
Our client could not fulfil his export obligation even within the first extension of two years. We applied for a second extension of two more years. The EPCG Committee granted the second extension in EOP for two years on payment of 50% of proportionate duty liability on unfulfilled EO. The duty payable worked out to Rs. 39 Lakhs. In this case, the Custom Authorities has already encashed the bank guarantee for around Rs.43 Lakhs.
We contended that the department could adjust the payment of 50% of proportionate duty liability on unfulfilled EO against the bank guarantee encashment. The Department accepted our submission. Client was very happy on account of their cash flow savings.