9911796707
TMI Blog2007 (3) TMI 666X X X X Extracts X X X X X X X X Extracts X X X X ..... exporting them. It had registered itself for export and import and sought benefit of the Government policy to encourage such activity. 3. The Government of India, Ministry of Commerce announced several schemes of duty exemptions/remission by which substantially the fee for import of inputs required for export production became permissible. To monitor such activity and to channelise the benefit of the scheme the Ministry introduced (Duty Entitlement Pass Book Scheme) (DEPB) which was intended to neutralize the incidence of customs duty on the import content of the export products. It was provided by way of grant of duty credit against the export product. 4. This scheme envisaged that exporter may apply for credit at specified percentage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 7. As per the said licence, petitioner was issued DEPB credit for Rs. 4,32,000/- for the item described at Serial No. 17 in the list of textiles under Appendix 28A vide Annexure-D. Despite this beneficial provision, the Joint Director General of Foreign Trade, Bangalore - the second respondent issued a show-cause notice on 16/17-11-1999 to the petitioner vide Annexure-E. to show cause why the DEPB licence issued on 7-9-1999 shall not be cancelled. The petitioner answered the show-cause notice with acceptable explanation and reiterated that the produce exported by it was well defined under Serial No. 17 of Appendix 28A. But the second respondent did not accede to the request of the petitioner and decided to cancel the licence referring t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct as per standard input/output norms and determine the basic customs duty payable on such deemed imports. The value additional achieved by export of such product shall be taken into account while determining the rate of duty credit under the scheme. This is elaborately dealt with in Para 7.25 of Export and Import Policy 1997-2002. Based on this policy of the Union of India, the Duty Entitlement Pass Book scheme was formulated and as per that scheme various items were listed to come within its ambit. The petitioner s products finds place at Serial No. 17. The petitioner had exported its products in the months of November and December, 1998 and report in this regard was submitted to the authorities concerned who issued the DEPB licence to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed in the general instructions issued on 1-4-1999 and under such general instructions, the DEPB scheme for various types of garment would not cover silk as well as woollen garments unless specifically mentioned in DEPB description. Since no such specific description is found in the DEPB description and item 17 is non-descriptive, the petitioner s products are therefore brought out of the ambit of the scheme and are not entitled to the credit benefit. 12. I have heard both sides. Though the narration of facts is little elaborate, the points that arise for consideration are only two fold : (i) Whether the general instructions issued are prospective in application or retrospectively effective? (ii) Whether the general instructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c notice. 15. In the instant case, consignments of the petitioner left its hands and was exported on 3-11-1998 and 14-12-1998 respectively that was much before the general instructions were issued on 1-4-1999 whereby the drastic change in the policy was effected describing certain items to be excluded. This being to the disadvantage of the exporter would not affect the export already effected by the petitioner. In this view of the matter, the benefit which has accrued to the petitioner of the policy prior to general instructions on 1-4-1999 was available to the petitioner and any deprivation of it would indicate discrimination and depriving it of the benefit which was granted to similarly placed firms hence the policy decision is unsustai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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