2007 (3) TMI 666 - HC - Customs

Summary

Issues involved:
The judgment involves the interpretation of the Duty Entitlement Pass Book (DEPB) scheme and the validity of general instructions affecting the entitlement of exporters under the scheme.

Interpretation of DEPB Scheme:
The petitioner, a partnership firm engaged in garment manufacturing and export, sought benefit under the DEPB scheme which aimed to neutralize customs duty on export products. The petitioner exported gents jackets and obtained a DEPB license. However, the license was later canceled by the authorities, citing general instructions excluding silk and wool garments from the scheme.

Validity of General Instructions:
The authorities contended that the petitioner's products were not entitled to DEPB benefits as they did not specifically mention silk and wool garments. The petitioner argued that the general instructions issued should not apply retrospectively and that the benefits accrued prior to the instructions should be upheld.

Court's Decision:
The court held that the general instructions should not have retrospective effect and should not deprive exporters of benefits already accrued. As the petitioner's exports predated the instructions, they were entitled to the DEPB benefits. The court quashed the orders canceling the DEPB license, emphasizing the need for authorities to consider all relevant aspects before making decisions.

Conclusion:
The court allowed the writ petition, quashing the orders canceling the DEPB license. It affirmed that the petitioner was entitled to the benefits under the DEPB scheme, and the general instructions should not affect exports made before their issuance. No costs were awarded in the matter.