6.12A Capital Goods imported under the EPCG scheme which are found defective or unsuitable for use may be re-exported with the permission of the Licensing Authority. In cases where the Capital Goods have been cleared without payment of basic Customs duty, no duty otherwise leviable on imports shall be paid on such re-export and the EPCG licence holder shall not be eligible for any drawback benefits. However, in cases where the Capital Goods have been cleared on payment of concessional customs duty, no duty otherwise leviable on imports shall be paid on such re-export and the EPCG license holder shall be entitled for drawback in lieu of concessional duty paid at the time of re-export. The export obligation imposed on such capital goods will be extinguished