2015 (9) TMI 83 - HC - Customs

SHIS Scheme and Zero duty EPCG Scheme Re-Validation of License Petitioner raises grievance as to revalidation of Status Holders Incentive Scrip (SHIS Scheme) and revalidate licence even if it has lapsed Merely because show cause notice was issued benefits of SHIS Scheme and Zero duty EPCG Scheme should not be denied and continued as such Held that - respondents apprehended that despite pendency of show cause notice and proceedings, they would clear consignments of petitioner provided petitioner produces either SHIS or EPCG valid licences Petitioner agreed to apprehensions made by respondent Petition disposed of Decided in favour of Assesse.

Summary

Issues:
1. Relief sought for quashing show cause notices
2. Revalidation of Status Holders Incentive Scrip (SHIS) licenses
3. Clearance of consignments under SHIS and Zero duty EPCG schemes

Relief sought for quashing show cause notices:
The petition under Article 226 sought relief to quash show cause notices dated 19th May 2014 and 19th December 2014. The senior counsel for the petitioner clarified that they were not seeking relief for quashing these notices. Consequently, the prayers related to this issue were not considered by the Court.

Revalidation of Status Holders Incentive Scrip (SHIS) licenses:
The petitioner's senior counsel raised a concern regarding the revalidation of SHIS licenses, even if they had lapsed. The counsel emphasized the petitioner's performance in the export sector, highlighting their contribution to earning foreign exchange for the country. The petitioner's consignments were held up, and the counsel pointed out a request made to the Deputy Commissioner of Customs. The Respondent assured that despite pending show cause notices, they would clear the consignments if valid SHIS or EPCG licenses were produced. The Court accepted the Respondent's statements as undertakings and expected all authorities to abide by them. The Court clarified that future import and export clearances for the petitioner should be in accordance with applicable policies and upon production of the required licenses.

Clearance of consignments under SHIS and Zero duty EPCG schemes:
The Court disposed of the matter based on the statements made by the Respondent's counsel, accepting them as undertakings. The Court directed that all petitioner contentions related to the controversy and show cause notice contents could be raised during proceedings before the competent authority. The Court emphasized that future consignments, whether for import or export, should be cleared as per relevant policies and upon presentation of the necessary licenses referred to in the statements made by the Respondent's counsel.