In my opinion, the shipments made within the original or extended EO period can be counted towards discharge of EO, regardless of when you made the application for EO extension.
Q. We obtained advance authorisation for items covered under Appendix 4J of HBP. We did not fulfil the export obligation within the initial EO period of six months, or even within the extended EO period of nine months. The import item was removed from Appendix 4J, 18 months after issuance of advance authorisation. Thereafter, we fulfilled the EO within 24 months. Given this, is there any remedy for regularising and redeeming the authorisation? If the answer is yes, what is the quantum of composition fee for extension?
I do not think removal of the item from Appendix 4J after the expiry of the initial and extended EO periods of your advance authorisation will help you. However, you may try your luck with the PRC.
Q. We want to import some machinery from a foreign party on a temporary lease and, after using it for some time, send it back to the same party. What are the duty implications?
You can import the machinery under the exemption notification 72/2017-Cus dated August 10, 2017. Alternatively, you can import it on payment of full duty, and after use, re-export it under claim of duty drawback under Section 74 of the Customs Act, 1962, read with notification 19/1965-Cus dated February 6, 1965.