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2019 (3) TMI 985 - HC - CustomsIssuance of duty credit scrip (authorization) in terms of paragraphs 3.14.4 and 3.14.5 of the Foreign Trade Policy - refusal of duty scrip by invoking paragraph 3.14.5 (C)(i) of the Foreign Trade Policy 2009 2014 read with Notification No.43(RE 2009 14) dated 25/9/2013 - applicability of binding judgment of this Court in the case of JSW Steel Ltd. Vs. Union of India 2016 (1) TMI 957 - BOMBAY HIGH COURT . Held that - In view of the Incremental Export Growth achieved by the petitioner and having realized the sale proceeds in convertible foreign exchange, vide online application dated 24th March, 2015, the petitioner claimed duty scrip for ₹ 7,59,65,508.03 in the prescribed form ANF 3F. However, the EDI system, at that point of time, did not accept application for issuance of scrips for value above ₹ 1 crore - the judgment in JSW Steel Ltd. 2016 (1) TMI 957 - BOMBAY HIGH COURT is applicable to the facts of the present case, where it was held that None can claim any benefit or incentive as an absolute right. However, a definite policy is enunciated in the present case. That policy extends an incentive for a demonstrated increase in exports. Its purpose is also clear, viz., to encourage more exports. The policy s terms must, therefore, receive an interpretation as would advance its stated purpose, viz., to promote and encourage exports. Petition allowed.
Issues:
Challenge to refusal of duty credit scrip issuance under Foreign Trade Policy. Analysis: The petitioner, a company engaged in manufacturing and exporting Pneumatic Tyres, challenged the refusal to issue duty credit scrip under the Foreign Trade Policy. The petitioner sought directions for the issuance of duty credit scrip for the balance amount of ?6,59,65,508.03. The refusal was based on paragraph 3.14.5 of the Foreign Trade Policy 2009-2014, which the petitioner contended was contrary to a previous judgment of the Court in JSW Steel Ltd. vs. Union of India. The petitioner highlighted its export performance, stating that it exported more than 85% of its products to over 120 countries, including developed nations. The petitioner claimed entitlement to duty credit scrip based on achieving Incremental Export Growth during the financial year 2013-2014. The petitioner's claim was supported by various notifications and amendments in the Foreign Trade Policy, which were considered in the previous judgment of JSW Steel Ltd. Despite the petitioner's efforts to claim the duty credit scrip, the respondents issued scrips totaling only ?1 crore, significantly less than the claimed amount. The petitioner made repeated requests for reconsideration and highlighted previous court decisions supporting their claim. However, the respondents failed to issue the balance amount of ?6,59,65,508.03, leading the petitioner to approach the Court, alleging arbitrariness and unsustainability in the respondents' actions. The Court referred to the judgment in JSW Steel Ltd., which covered similar issues, and found that the petitioner's case was also governed by the same principles. The Court noted that a previous writ petition had also considered the relevant notifications, concluding that the judgment in JSW Steel Ltd. applied to the present case. Consequently, the Court made the Rule absolute in line with the Division Bench's judgment in JSW Steel Ltd. vs. Union of India & ors., granting the petitioner eight weeks to comply with the directions.
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