2016 (2) TMI 321 - HC - Customs

Re-validation Status Holders Incentive Scrip (SHIS) scheme - It is submitted that on account of wrong action on part of the authorities in crediting the said duty amount, the petitioner could not utilize the duty during the original licence period, which at the relevant time was approximately 15 months duration left. - Held that - Be that as it may, now that the authorities have done both, re-crediting the amount as well as extended the validity period of the licence, we do not propose to take any further action in the present petition.

Summary

Issues:
1. Re-crediting duty amount by authorities.
2. Inability to utilize duty during original license period.
3. Revalidation of license for a shorter period.
4. Petitioner's right to further extension of license validity.

Analysis:
1. The judgment addresses the undisputed re-crediting of the duty amount by the authorities, amounting to Rs. 4.69 crores. The petitioner's counsel acknowledges the resolution of a substantial part of the grievance but highlights that due to the initial wrong action in crediting the duty amount, the petitioner could not utilize it during the original license period, which had approximately 15 months left. Subsequently, upon the petitioner's application for revalidation of the license, a six-month extension was granted by DGFT-respondent No.3. However, after the re-crediting, only about four and a half months remain in the revalidated license period, posing a challenge for the petitioner to make use of the credit within this limited timeframe.

2. Despite the actions taken by the authorities in re-crediting the amount and extending the validity period of the license, the court decides not to take further action in the current petition. The judgment clarifies that if the petitioner requires a further extension of the license validity in the future, they are entitled to apply to the authorities for such an extension. Moreover, if the authorities' decision on the matter causes grievance to the petitioner, they retain the right to pursue legal measures available under the law. This provision ensures that the petitioner can seek redressal if dissatisfied with any future decisions regarding the extension of the license validity.

3. Ultimately, the petition is disposed of in accordance with the aforementioned considerations. The judgment effectively balances the resolution of the immediate issue of re-crediting the duty amount with the petitioner's potential need for an extended validity period for the license in the future. By allowing the petitioner the opportunity to seek further extensions and pursue legal remedies if necessary, the court ensures a fair and flexible approach to addressing the complexities arising from the initial mishandling of the duty amount and the subsequent revalidation of the license for a shorter duration.