18 December 2010
Thanks for the reply Mr. Bhagat !
can you please give me the reference of these levy ? 15% interest or 15% penalty? Per annum or what? & when it is required to be paid (i.e. whether after completion of 8yrs?) ?
are you sure that no other action will be taken like confiscation of Capital Goods etc. ?
here is a forum discussion too.. https://www.caclubindia.com/forum/consequences-in-case-of-default-in-epcg-scheme--117240.asp
please refer to para 5.14 of foreign trade policy ,2002-07
"In case, EPCG licence holder fails to fulfil prescribed export obligation, he shall pay duties of Customs plus 15% interest per annum to the Customs autohrty"
LINK IS :- http://dgftcom.nic.in/exim/2000/procedures/bchap-5.htm
and also para 5.5.2 of the ftp 2010-11, verify its.
CAclubindia
