Customs Dept Cannot Question DGFT’s Export Obligation Discharge: CESTAT Sets aside Demand & Penalties on EPCG Licence

The CESTAT has set aside a demand and penalties on an "EPCG license," ruling that the "Customs Dept. cannot question the DGFT's export obligation discharge." The tribunal's decision, which is a significant victory for the company, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.