2009 (1) TMI 509 - HC - Customs

Duty Free Credit Entitlement - Still the appellants have refused to implement the order passed by the Standing Grievance Committee forcing the respondent to approach this Court in a writ petition, which has been allowed - whether the respondent is entitled to Duty Free Credit Entitlement as the shipments were against free shipping bills and the order passed by the Supreme Court in another case, staying the order passed by the High Court of Gujarat. Relaxation has already been granted to the respondent - Rather the orders have been accepted and even the Minister has accorded his approval. We find difficult to appreciate the stand of the appellant that they have decided not to implement orders passed by the Standing Grievance Committee granting relief to exporters which adversely affect the Government s stand in the court of law - Appeal is dismissed

Issues:
1. Compliance with directions issued by Standing Grievance Committee regarding Duty Free Credit Entitlement.
2. Rejection of Duty Free Credit Entitlement claim based on exports against free shipping bills.
3. Standing Grievance Committee's orders dated 6th October, 2005, and 27th February, 2006.
4. Refusal to implement Standing Grievance Committee's orders despite Minister's approval.
5. Challenge of the appellants' decision in a writ petition.
6. Role and significance of the Standing Grievance Committee in addressing exporters' grievances.

Comprehensive Analysis:
1. The judgment involves the issue of compliance with directions issued by the Standing Grievance Committee concerning Duty Free Credit Entitlement. The respondent, an exporter, had his claim rejected due to exports against free shipping bills. The Committee, chaired by the Director General of Foreign Trade, considered the case and directed compliance with the entitlement, emphasizing the relaxation of policy subject to competent authority approval.

2. The rejection of the Duty Free Credit Entitlement claim was based on exports against free shipping bills, leading to the respondent's petition before the Standing Grievance Committee. The Committee's detailed order highlighted the exporter's compliance with export laws and the admissibility of the entitlement even for shipments without export incentives claimed in shipping bills.

3. The Standing Grievance Committee's orders dated 6th October, 2005, and 27th February, 2006, emphasized the exporter's eligibility for Duty Free Credit Entitlement, subject to policy relaxation approved by the competent authority. The latter order confirmed the Minister's approval for the relaxation, yet the appellants failed to implement the directives, prompting the respondent to seek relief through a writ petition.

4. Despite obtaining the Minister's approval for policy relaxation, the appellants refused to implement the Committee's orders, leading to the respondent's legal recourse. The judgment highlighted the importance of honoring the Committee's decisions and the adverse impact of non-compliance on the government's position in legal proceedings, ultimately resulting in the dismissal of the appeal.

5. The challenge in the writ petition focused on the appellants' refusal to implement the Standing Grievance Committee's orders despite obtaining necessary approvals, indicating a lack of adherence to the redressal mechanism established for exporters. The judgment emphasized the counterproductive nature of the appellants' stance and the necessity of upholding the Committee's decisions for effective grievance resolution.

6. The significance of the Standing Grievance Committee in addressing exporters' grievances was underscored in the judgment, emphasizing the Committee's composition, acceptance of its orders by the Minister, and the need for appellants to respect and implement the decisions to maintain the efficacy of the redressal mechanism. The dismissal of the appeal highlighted the court's stance on honoring the Committee's directives for resolving exporter grievances effectively.

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