Malu Paper Mills (MPM) imported machinery (under EPCG scheme) at concessional duty. MPM was supposed to export 8 times of duty saved in 8 years. As procedure, MPM issued bank guarantee (BG) to UOI. However, MPM could not fulfil the export obligation in 8 years. But sought extension in export time under a separate scheme of FTP. But,customs encashed the BG. HC held that MLM can avail benefits of separate scheme and customs return the sum encashed