EPCG Exemption for Sericulture Projects Does Not Waive Block-Wise Export Obligation, Only Average Export Requirement: CESTAT

The CESTAT has clarified that while Sericulture projects enjoy EPCG (Export Promotion Capital Goods) exemption, this does not waive the block-wise export obligation. Instead, only the average export requirement applies. This ruling distinguishes between the general exemption for the sector and specific export performance conditions. It means that while the overall export obligation remains, the requirement to meet specific export targets within predefined blocks is relaxed for sericulture projects. This interpretation aims to provide flexibility to a crucial agricultural sector while still ensuring that the benefits of the EPCG scheme are tied to overall export promotion, balancing industry support with policy objectives.