DAEWOO MOTORS INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner (Daewoo Motors India Ltd.) have preferred this writ petition praying for the issuance of writ commanding respondent No.l to withdraw certain demand notices issued by the Customs Department, for invoking the related bank guarantees provided by the respondents No.2 and 3 on behalf of the petitioner and have further prayed for direction to respondents No.2 and 3 not to pay the amount of guarantees to the respondent. No . 1

(2.) These bank guarantees were furnished by the petitioner company to the Customs Department at the time of availing exemption from customs duty in relation to plants and equipment etc. imported by the petitioner under licences covered by the EPCG Scheme in terms of the Export and Import Policy of the relevant period i.e. 1995-1999. It was a condition of the said exemption notification No.111/95/customs dated 5.6.1995 issued under Section 25(1) of the Customs Act, 1962 that upon the importer issuing a bond for such amount as is specified by the customs officials and also upon the importer binding himself to fulfil the export obligation equivalent to six times the CIF value of the goods which have imported on FOB basis, or alternatively four times the CIF value of the goods imported on net foreign exchange basis, within a period of eight years in the under - mentioned prescribed proportion, duty of customs would be fully exempt while in the case of additional duty only an amount upto 10 % would be payable. <FRM>JUDGEMENT_131_ILRDLH10_2002Html1.htm</FRM>

(3.) It was also provided that. export obligation of a particular block, may be set off by the excess exports made in the said preceding blocks.