2020 (3) TMI 274 - HC - Customs

Applications for obtaining Duty Credit Scrip concessions - time limit for availing such concession - HELD THAT - The present petitioner is directly interested in the Focus Products Scheme for export of valves. It must be noticed that the petitioner is not in the manufacture of any item used in bicycles. They are involved with export of valves. Therefore, when under the Trade Notice No.11 of 2015, it had been stated that there are no merits in claiming exemption for any other items apart from items used on bicycle which Trade Notification had been clarified in Trade No 16 of 2018 dated 07.06.2018, the clarification actually clarifies the earlier stand that valves and such other items were not eligible for concession by Trade Notification No.11 of 2015. It is thus seen that there is an inclusion of valves and other items which have been directly exported by the petitioner. Therefore, the petitioner can take advantage of the Trade Notice No.16 of 2018 and their period of limitation would be within six months from 07.06.2018. These applications have been rejected by the respondents with a one line order i.e., it is time barred . Rejections have been placed before this Court. The learned Standing Counsel for the respondents justified the said rejection stating that a new starting period of limitation cannot be envisaged by the petitioner - respondents are directed to reconsider the application already filed and they are otherwise in order, consider the same by merits - petition allowed.

Summary

Issues:
Challenge to rejection letters issued under Foreign Trade Policy.

Analysis:
The writ petition challenged 115 rejection letters issued between 27.11.2018 and 09.04.2019 related to the Foreign Trade Policy. The petitioner, a company exporting industrial valves, claimed to have Importer Exporter Code and was involved in seeking concessions under the Policy. The Policy specified time limits for seeking concessions, which the petitioner did not adhere to. The petitioner argued based on a judgment from the Gujarat High Court regarding similar concessions for valves and other items. The Government had introduced the Focus Projects Scheme under the Policy, granting duty credit scrip for exports of specific products. The petitioner sought to benefit from this scheme for exporting valves. The Gujarat High Court judgment clarified the eligibility of valves for concessions, which was further upheld by the Supreme Court. Subsequently, a Trade Notice was withdrawn, indicating eligibility for valves. The respondents rejected the petitioner's applications as time-barred, but the court found in favor of the petitioner, directing the respondents to reconsider the applications on their merits.

This case involved a challenge to rejection letters issued under the Foreign Trade Policy. The petitioner, an exporter of industrial valves, sought concessions under the Policy but faced rejection due to missing the specified time limits. The petitioner relied on a Gujarat High Court judgment regarding similar concessions for valves, which was upheld by the Supreme Court. A subsequent Trade Notice clarified the eligibility of valves for concessions. The court held that the rejection of the petitioner's applications as time-barred was not justified, directing the respondents to reconsider the applications on their merits.