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2023 (12) TMI 1114 - HC - CustomsDepriving duty credit under RoDTEP on exports - exports fall under the restricted category or not - prior period i.e. 01.01.2021 to 31.05.2022 - subsequent period i.e. 01.06.2022 to 13.12.2022 - HELD THAT - Having considered the facts of the case which are identical to the case of M/s. Shree Renuka Sugars Ltd. 2023 (4) TMI 789 - GUJARAT HIGH COURT , it is opined that the respondents could not have denied the benefit of rebate under the RoDTEP scheme to the petitioners, more particularly, when the petitioners have exported product after fulfilling the conditions as prescribed by the Directorate of Sugar as well as the Notifications issued by the Central Government from time to time. The Coordinate Bench of this Court has also passed the order permitting rebate to the petitioner of the said case. As per the Government circular dated 5th November 2022, the schedule quantity of sugar for export in Sugar Season for 2022-23 was also issued with various conditions, whereby the quantity for export of sugar to various mills was also quantified - By Notification dated 21st October 2022, the Government has also issued export release order for sugar from Somalia. In view of the Notifications issued by the Government from time to time permitting export of sugar, the basic objective of the RoDTEP scheme is to grant benefit of rebate to the exporter as an incentive or exporting product. The respondents are directed to grant benefit of rebate under the RoDTEP scheme to the petitioners who have exported sugar with specific permission under the specific condition prescribed by the Directorate of Sugar as per Notification No. 19/2015-20 dated 17th August 2021 and Clause 3 of paragraph 2 of the Notification No. 76/2021-Customs (N.T.) dated 23rd September 2021 - petition allowed.
Issues:
1. Interpretation of RoDTEP scheme provisions regarding duty credit on exports. 2. Denial of RoDTEP scheme benefits based on export policy categorization. 3. Legal validity of government notifications affecting export policy. 4. Compliance with conditions for export under specific permissions. 5. Application of court precedent in similar cases for RoDTEP scheme benefits. Analysis: 1. The petitioners sought relief under Article 226 of the Constitution to challenge the denial of duty credit under the RoDTEP scheme for exports made during specific periods. The controversy centered around the interpretation of RoDTEP scheme provisions, particularly paragraph 4.55(iv) of Chapter 4 to the FTP, and related notifications. 2. The respondents denied RoDTEP scheme benefits to the petitioners citing the change in export policy categorization of sugar products from free to restricted category. This change, as per notifications issued, required specific permission from the Directorate of Sugar for export. The respondents relied on the restriction under paragraph 4.55 of the RoDTEP scheme to support their denial of benefits. 3. The court considered the legality and impact of government notifications, such as Notification No. 19/2015-20 and Notification No. 76/2021-Customs (N.T.), which outlined conditions for export under the RoDTEP scheme. The court analyzed the effect of these notifications on the petitioners' eligibility for duty credit under the scheme. 4. The petitioners contended that they had complied with the conditions for export by obtaining specific permission from the Directorate of Sugar, as required by the amended export policy. The court noted the submissions regarding circulars issued by the Government of India, which outlined conditions for sugar export and allocation of quotas, supporting the petitioners' compliance. 5. Referring to a previous decision by a Coordinate Bench in a similar case, the court emphasized the applicability of precedent in granting RoDTEP scheme benefits to exporters who fulfilled prescribed conditions. The court held that the respondents were unjustified in denying the petitioners the duty credit under the scheme, especially considering compliance with government notifications and conditions for export. 6. Ultimately, the court allowed both petitions, directing the respondents to grant the benefit of rebate under the RoDTEP scheme to the petitioners who exported sugar with specific permissions as per the Directorate of Sugar's conditions and relevant notifications. The court made the rule absolute in favor of the petitioners, granting the requested relief without imposing any costs.
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