2014 (12) TMI 1358 - HC - Customs

Condonation of procedural lapse of supplying goods to SEZ only under ARE-1 without Bills of Exports - advance authorization scheme - deemed exports - According to the petitioner, the products supplied to the SEZ would qualify as exports and would discharge the petitioner from its export obligations against the Advance Authorizations - HELD THAT - The petition is disposed of with liberty to the petitioner to make a fresh representation alongwith all documents relied upon by the petitioner within a period of two weeks from today. It is directed that if such representation is made, the DGFT shall consider and dispose of the same within a period of eight weeks after affording the petitioner an opportunity of being heard.

Summary

Issues:
Petition for writ of mandamus to direct consideration of documents for condoning procedural lapse in supplying goods to SEZ without Bills of Exports.

Analysis:
The petitioner in this case had imported goods based on an Advance Authorization and used them for supplying to a unit in the Special Economic Zone (SEZ). The petitioner's contention is that these supplies should be treated as deemed exports, thereby fulfilling the export obligations against the Advance Authorizations. However, there was a procedural error as the bill of exports was not submitted along with the ARE-1 form. The petitioner sought condonation of this lapse, claiming that the products supplied to the SEZ should be recognized as exports.

The court disposed of the petition, granting the petitioner the liberty to submit a fresh representation along with all relevant documents within two weeks. The Director General of Foreign Trade (DGFT) was directed to consider and decide on the representation within eight weeks after giving the petitioner an opportunity to be heard. Importantly, the court clarified that its order should not be construed as expressing any opinion on the merits of the case.

This judgment highlights the importance of procedural compliance in export-related matters and the recourse available to petitioners seeking condonation of lapses. It underscores the role of the DGFT in evaluating representations and making decisions within a specified timeframe. The court's directive for a fresh representation with supporting documents emphasizes the need for thorough documentation and adherence to regulatory requirements in trade transactions involving SEZs and Advance Authorizations.