REXNORD ELECTRONICS Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) Interpretation of the provisions of Section 127A read with Section 127H of the Customs Act is involved in this appeal which arises out of a judgment and order dated 27th September, 2006 passed by the High Court of Judicature at Bombay in Writ Petition Nos. 6238 and 6242 of 2006.

(3.) Appellant herein is an exporter. It was issued two licences under Export Promotion Capital Goods (EPCG) Scheme for CIF value of Rs.26,81,750/- and Rs.27,41,669/- respectively. It imported capital goods against the aforementioned licences availing the benefit of the Notification dated 20th April, 1992. It presented bills of entry at Mumbai Customs for there clearance. Pursuant to or in furtherance of the said licences the appellant was required to export goods worth US $ 3,40,000 and US $ 3,47,600 respectively within a period of five years from the date of issuance thereof. Appellant, however, could not meet its export liability and the value of the exports made by it was to the extent of US $ 2,79,210 and US $ 2,80,450.83 respectively. In terms of the aforementioned Notification the appellant was required to furnish a bond and undertaking before the Director General of Foreign Trade, an authority created under the Foreign Trade (Development and Regulation) Act, 1992. Appellant had also undertaken to pay interest on the differential amount.