2012 (8) TMI 7 - HC - Customs

Claim of revalidation of the scrip under the SFIS - Held that - The terms of the SFIS and the authorization issued under it states that if the goods had reached in the India by the date of expiry of the authorization i.e.30.04.2011, the petitioner could have qualified for extension to facilitate their clearance - in this case The goods in fact reached on 26.05.2011 - a fact known to the petitioner when it booked them after entering into contract with the foreign supplier, on 18.04.2011 - against assessee.

Summary

Issues:
Claim for revalidation of customs duty concessions under Serve From India Scheme (SFIS) due to expired scrip validity.

Analysis:
The petitioner sought a mandamus directing the first respondent to revalidate its scrip under SFIS for customs duty concessions valid until 30.04.2011. The petitioner imported goods after the scrip expiry, leading to duty payment requirement. The request for revalidation was denied by the Policy Relaxation Committee (PRC) on 29.08.2011. The petitioner argued that as per public notice, duty exemption should apply until goods landed. Respondents contended that the Handbook of Procedure specified a 24-month validity for Duty Credit scrip without revalidation unless under specific conditions.

Analysis:
The Court examined the SFIS terms and authorization clarity, stating benefits for two years with extension provisions for shipments reaching Indian ports post-scrip expiry. As the goods arrived on 26.05.2011 after the scrip lapse on 30.04.2011, the petitioner's claim for extension was deemed unreasonable. The Court noted the appeal option under Section-15 of the Foreign Trade Development Act, advising the petitioner to pursue it within two weeks for merit consideration by the Central Government.

Analysis:
Conclusively, the Court dismissed the Writ Petition while allowing the petitioner to appeal the PRC decision under the Foreign Trade Development Act. The relief sought for revalidation of customs duty concessions post-scrip expiry was denied based on the goods arrival timeline and the SFIS provisions.