Page 123 - ELT_15th August 2020_Vol 373_Part 4

2020 ] LUBI INDUSTRIES LLP v. UNION OF INDIA 457

this Court is of the considered view that sufficient cause has been shown by the
petitioners for not fulfilling the export obligation within the time specified by
this Court.
8. At this juncture, reference may be made to paragraph 4.42 of the
Handbook of Procedures, which reads as under :-
“4.42 Export Obligation (EO) Period and its Extension :
(a) Period of EO fulfilment under an Advance Authorisation shall com-
mence from date of issue of Authorisation, unless otherwise specified.
The period of EO fulfilment is given in paragraph 4.22 of FTP.
(b) Regional Authority may consider a request of Advance Authorisation
holder for one extension of EO period upto six months from the date
of expiry of EO period subject to payment of composition fee of 0.5%
of the shortfall in EO. Authorisation holder will have to submit a self-
declaration to RA stating that unutilised imported/domestically pro-
cured inputs are available with the applicant.
(c) Request for further extension of six months after first extension as in
(b) above can be considered by Regional Authority, provided Author-
isation holder has fulfilled minimum 50% export obligation in quanti-
ty as well as in value, on pro rata basis. This will be subject to payment
of composition fee @ 0.5% per month on unfulfilled FOB value of ex-
port obligation. No further extension shall be allowed by Regional
Authority. This provision shall also be applicable to Advance Author-
isations issued during FTP 2009-2014. However, only two extensions
of six months each as given in sub-para (b) and in this sub-para can be
allowed subject to payment of composition fee and under no circum-
stance Regional Authority shall allow any extension beyond 12
months from date of expiry of EO period. At the time of filing applica-
tion for second extension, authorisation holder will have to submit a
certificate to RA from an independent Chartered Account-
ant/Chartered Engineer certifying that unutilised import-
ed/domestically procured inputs are available with the applicant.
(d) However, extension in EO period in respect of an Advance Authoriza-
tion issued for import of an input listed under Appendix 4j of HBP
2015-2020 or Appendix 30A of Hand Book of Procedures, 2009-14
shall not be permitted by RA.
(e) Whenever a ban/restriction is imposed on export of any product, ex-
port obligation period in respect of Advance Authorisation already is-
sued prior to imposition of ban, would stand automatically extended
for a period equivalent to the duration of ban, without any composi-
tion fee.”
9. On a perusal of the provisions of paragraph 4.42 of the Handbook of
Procedures, it appears that clause (b) thereof provides for extension of export
obligation period upto six months from the date of expiry of the export obliga-
tion period subject to payment of composition fee of 0.5% of the shortfall in ex-
port obligation; and clause (c) thereof, provides for further extension of six
months after first extension as in clause (b) can be considered by regional author-
ity, provided authorisation holder has fulfilled minimum 50% export obligation
in quantity as well as in value, on pro rata basis. This would be subject to pay-
ment of composition fee at the rate of 0.5% per month on unfulfilled F.O.B. value
of export obligation.

EXCISE LAW TIMES  15th August 2020  123