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Realisation of export proceeds not mandatory for drawback on re-exports

A licence or duty credit scrip obtained through misrepresentation is voidable but not void till it is cancelled

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In order to incur a reduced export obligation under the EPCG scheme, we propose to pay IGST on imports of capital goods? Is it allowed? Yes, provided you do not take input tax credit of the IGST paid

TNC Rajagopalan

3 min read Last Updated : Jul 27 2020 | 9:55 PM IST

We had purchased a duty credit scrip from the market and utilised it for paying duty on import of goods. Later, the authorities discovered that the duty credit scrip was obtained through misrepresentation. Can we be made liable for payment of duty or penalty? Can the goods we imported be confiscated?

No. A licence or duty credit scrip obtained through misrepresentation is voidable but not void till it is cancelled. So long as the transferee had purchased the duty credit scrip duly issued by the competent authority and it was valid on the date of payment of duty by the

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