2024 (10) TMI 516 - HC - Customs

Entitlement for waiver of export obligation and duty-saved amount for import of bamboo processing machines under the Export Promotion Capital Goods Scheme - One of the many grievances of the petitioners is that instead of providing financial assistance to the industrial units, particularly those located in the North-Eastern Region in the form of grants, assistance has been provided in the form of returnable TDA i.e. Technical Developmental Assistance - HELD THAT - It is seen from the record that the facts so far relating to the establishment of the industry and beneficial scheme made available are not disputed by the respondents. This Court is of the opinion that, at least the petitioners have been able to make out a case for consideration of their case for waiver and therefore, without commenting on merit of the claim of the petitioners including the claim that the respondents that actions are hit by the principle of promissory estoppels, the present writ petitions stands disposed with a direction to the competent authority in the Customs Department to consider the claim of the petitioners and to pass a speaking order within a period of eight weeks from the date of receipt of a certified copy of this order. It is further provided that till such determination is made, the interim order passed earlier on 18.04.2018, restraining the respondents from taking any coercive action against the petitioner shall remain operative. Petition disposed off.

Summary

Issues:
1. Grievances of the Bamboo Industries Association regarding lack of government assistance and financial support.
2. Entitlement of waiver of export obligation and duty-saved amount for import of bamboo processing machines under the Export Promotion Capital Goods Scheme.
3. Alleged withdrawal of promised benefits by the Union Government affecting the bamboo industry.
4. Consideration of the petitioners' case for waiver by the competent authority in the Customs Department.

Analysis:
1. The Bamboo Industries Association, aggrieved by the lack of proper attention and assistance from the Central Government, raised concerns about financial difficulties due to the form of assistance provided and initiation of recovery proceedings by the authorities. The petitioners sought resolution through representation to the competent authority.

2. Another petitioner, a member of the Association, filed a writ petition claiming entitlement to waiver of export obligation and duty-saved amount for importing bamboo processing machines under the EPCG Scheme. The petitioner's industry focused on manufacturing bamboo products, particularly bamboo blinds.

3. The petitioners alleged that the Union Government reneged on promises of support and assistance, leading to adverse effects on the industry's operations and potential closure. The Customs Department's initiation of recovery proceedings despite ongoing waiver processes added to the petitioners' grievances.

4. The Court considered the petitioners' claims and the communication highlighting the industry's challenges, including the need for special concessions in the North Eastern Region. The Court directed the competent authority in the Customs Department to consider the petitioners' case for waiver and issue a decision within eight weeks, maintaining the interim order against coercive actions during this period.

5. The judgment emphasized that it did not delve into the merits of the claims or counterclaims but allowed the petitioners to raise these issues in any future litigation. The writ petitions were disposed of, with each party bearing its costs, and the petitioners were granted the opportunity for further legal recourse if needed.