The CBIC has issued Circular No. 11/2023-Customs dated May 17, 2023 regarding the Amnesty Scheme providing One Time Settlement for Default in Export Obligation by Advance Authorization and EPCG Holders. This scheme is in line with Notification No.32/2023-Customs dated April 26, 2023.
The Ministry had issued the notification to amend 13 Customs notifications pertaining to Advance Authorization and EPCG Schemes. The amendments implement the procedure outlined in DGFT's Public Notice No. 02/2023 dated April 01, 2023. It allows authorization holders to settle pending cases of default in export obligations by paying applicable Customs duty. The interest payable is capped at 100% of exempted duties, with no interest on Additional Customs Duty and Special Additional Customs Duty. The Authorization holders must ensure completion of the payment process before September 30, 2023, to avail of this scheme. Notably, the scheme does not apply to cases involving fraud, misrepresentation, or unauthorized diversion of materials or capital goods. Furthermore, Authorization holders are not eligible to claim CENVAT credit or seek refunds for duties paid under this scheme.
Disclaimer:
The information provided in this update is intended for informational purposes only and does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This update is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi judicial authorities may not take a position contrary to the views mentioned hereinrra quis.
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