2018 (10) TMI 117 - HC - Customs

Supplies made to SEZ - fulfillment of Export obligation when import was made against Advance Authorisation scheme - Minutes of meetings / orders dated 1st August, 2017 and 6th December, 2017 of the Policy Relaxation Committee in the office of the Director General of Foreign Trade, respondent no.2 - Held that - Following the decision in the case of arsen and Tubro Ltd. (2017 (10) TMI 40), the impugned orders / minutes be set aside and the respondents be directed to issue export obligation discharge certificates in respect of advance authorizations in question. Decided in favor of petitioner.

Summary

Issues: Challenge to Policy Relaxation Committee's orders refusing to relax export obligation requirements based on absence of assessed copy of bill of export.

Analysis:
1. The petition challenges the Policy Relaxation Committee's minutes/orders of August 1, 2017, and December 6, 2017, which refused to relax the requirement of evidencing discharge of export obligations in absence of assessed copy of bill of export for supplies made to SEZ. The petitioner sought relaxation to provide other corroborative evidence like ARE-1 to establish fulfillment of export obligations. The court noted a previous case where a similar issue was allowed by the court, emphasizing that failure to produce assessed bill of export does not automatically mean failure to discharge export obligations if other evidence like ARE-1 can establish supplies to SEZ.

2. The petitioner argued for setting aside the impugned orders and directing the issuance of export obligation discharge certificates for Advance Authorizations dated June 23, 2009, November 3, 2010, November 16, 2010, and September 20, 2012. The respondent, represented by Mr. Jetly, supported the Committee's orders but failed to provide any distinguishing features from the precedent set in Larsen and Tubro Ltd. The court found no reason to deviate from the previous decision and allowed the petition based on the reasoning in the Larsen and Tubro Ltd. case.

3. Consequently, the High Court set aside the minutes/orders of August 1, 2017, and December 6, 2017, directing the respondents to issue Export Obligation Discharge Certificates and redeem the Advance Authorizations dated June 23, 2009, November 3, 2010, November 16, 2010, and September 20, 2012. The petition was disposed of in favor of the petitioner based on the principles established in the Larsen and Tubro Ltd. case.