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TMI Blog2001 (10) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... from the following facts and circumstances :- 3. The Import-Export Policy for the period from 1990-1993 was substituted by Export and Import Policy effective from 1st April, 1992 to 31st March, 1997. As the contention raised before us is only with reference to Paragraph 119 of the said Policy, we do not deem it fit to refer to various other paragraphs of the said Policy, Paragraph 119 with regard to value addition of the said Policy reads thus :- Value addition 119. Value Addition for the purpose of this chapter shall be expressed as a percentage and shall be calculated according to the following formula : VA is Value addition; A is the FOB value realised by the EOU/EPZ unit; and B is the sum total of the CIF value of all imported inputs, the value of all payments made in foreign exchange by way of commission, royalty, fees or any other charges, and the value of all indigenous inputs purchased by the EOU/EPZ unit. Inputs mean raw materials, intermediates, components, consumables, parts and packing materials. 4. The aforesaid Paragraph 119 of the Exim Policy 1992-97 was revised by Notification dated 16th August, 1993 with effect from 1st April, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 993-94 to the revised value addition formula; (ii) the EOUs/EPZ units opting for the new value addition formula shall submit to the Development Commissioners of the EPZ concerned, their past performance, fresh projections of exports, imports, other foreign exchange outgo and net foreign exchange earnings for the next five years. In case of EOUs, where remaining bonding period is less than 5 years, the projections may be for this duration only. (iii) The Development Commissioner shall, keeping in mind such projections, recommend revised VA to the concerned Board of Approvals (BOA). After approval by the BOA, amended Letter of Permission/Letter of intent/Industrial licence, shall be issued by the concerned Development Commissioner in the case of EPZ units and by SIA in respect of EOUs; and (iv) units opting for computation of value addition in accordance with the new formula shall execute a new legal Agreement in the prescribed format. 2. This issues in public interest. Sd/- (Ajit Kumar) Director General of Foreign Trade Issued by : Ministry of Commerce, New Delhi. 6. It would be, thus, seen that upon revision of value addition criteria by No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmenced till the revised value addition was approved by the second Respondent with effect from 1st April, 1995, the Petitioners would be governed by old value addition formula as the Petitioners had already withdrawn their option for change over to new formula. In this backdrop of facts, second Respondent cannot be said to have erred in taking into consideration consumption of indigenous raw material for the period from 1st January, 1994; to 31st March, 1994, 1st April, 1994 to 30th June, 1994, 1st July, 1994 to 30th September, 1994, 1st October, 1994 to 30th December, 1994 and 1st January, 1995 to 31st March, 1995. The Development Commissioner (second Respondent) has calculated value addition in right perspective warranting no interference by this Court in extra-ordinary jurisdiction. 8. No other argument was pressed. Dated : 31st October, 2001 9. In view of what we have held above, the Writ Petition is liable to be dismissed. However, we may observe that during pendency of Writ Petition, certain interim orders came to be passed from time to time. Against the interim order passed by this Court on 30th July, 1997, the Respondents preferred Special Leave Petition before the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h January, 1993 did not become operative; (b) As per Paragraph 97 of Exim Policy, Acrylic Yarn shall have minimum value addition requirement at 20%; (c) The revised value addition of 30.03% under new formula be applied prospectively i.e. with effect from 6th January, 1994 (date of which commercial production began) and that first Petitioner is governed by the stipulated value addition at 37.72% under old formula with effect from 6th January, 1994 to 31st March, 1995 and is governed by stipulated value addition of 30.03% under new formula from 1st April, 1995; (d) The approval granted to revised projections and the revised value addition at 33.03% for the period 1st April, 1995 to 31st March, 2000 will be operative under new formula only upon execution of the legal undertaking by first Petitioner as required by Paragraph 98 of the Exim Policy; (e) The option exercised for a period of eighteen months by the first Petitioner for the purpose of calculation of value addition and DTA sale is not as per the provisions of Exim Policy and guidelines thereunder; (f) As the first Petitioner failed to exercise their option as provided under the guidelines for DT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 kgs. valued at Rs. 676.14 lakhs and Cotton Yarn to the extent of 40,515 kgs. valued at Rs. 45.47 lakhs but subject to the legal agreement to be executed by the first Petitioner in respect of export obligation and net foreign exchange earnings for the period 1st April, 1995 to 31st March, 2000 as provided in Paragraph 98 of the Exim Policy; (o) The total DTA sale entitlement in respect of Acrylic Yarn comes to Rs. 1749.30 lakhs for the period 1st January, 1994 to 30th June, 1995. The first Petitioner so far availed the benefit of Rs. 2156.40 lakhs (Rs. 1456.40 lakhs by way of advance DTA sale of trial production and Rs. 700 lakhs by way of interim order of this Court dated 13th October, 1995). Thus, the balance of Rs. 407.10 lakhs be adjusted against first Petitioner s future entitlement. 10. As we have already noted above, the said order passed by the Development Commissioner dated 24th November, 1995 came to be challenged by Petitioners by seeking amendment in the Writ Petition and the learned Senior Counsel appearing for Petitioners only raised one ground in challenging the said order. Upon passing of the order dated 24th November, 1995 on rescrutiny the earlier order d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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