9911796707
TMI Blog2010 (10) TMI 896X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods - petitioner willingly submitted an undertaking to that effect - higher authorities viz., Respondent Nos. 1 and 2, declined for grant of EPCG licence as it goes contra to the policy circulars of the Government and the clarifications contained therein - letter, requesting the petitioner to pay duty with 15% interest immediately to the customs authorities and to furnish the copy of challan – Held that:- petitioner-firm ought to have instructed the Bank to allow the Customs Department to invoke the bank guarantee. The petitioner, instead of doing so, seemingly with a sole view to evade the duty payable to the Exchequer, initiated the present proceedings invoking the writ jurisdiction. This Court does not deem it just and proper t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sionally on condition that the firm should submit an undertaking, in a Stamp Paper binding itself to the decision of the Headquarters with whom reference is pending, to the effect that they would pay 100% of duty saved amount together with 15% interest thereon from the date of import if the Headquarters does not concur with the decisions of ZSDGFT, Chennai. Subsequently, the Joint Director General of Foreign Trade, Madurai, issued the licence on 13-5-2005 and the petitioner also furnished Bank Guarantee through Andhra Bank for a sum of Rs. 3,90,000/- with an undertaking to pay 100% of the duty saved amount together with 15% interest thereon from the date of import of machinery, in case the Director General of Foreign Trade declines to concu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be cited by the Department to reject the petitioner's claim for issuance of EPCG licence, would submit that nowhere in the scheme as envisaged in the Foreign Trade Policy, there is any provision available, by invoking which, an EPCG licence can be refused for import of second-hand goods of Indian origin, for, paragraph-5.1 of the Foreign Trade policy explicitly states that second-hand capital goods without any restriction of age may also be imported under the EPCG Scheme; therefore, rejection of the petitioner-firm's request for import of such goods is without authority of law. In the same line, it is further argued that when the petitioner-firm did not even claim any specific benefit for re-import of Indian origin goods as applicable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regard, he referred to Policy Circular No. 16, dated 15-7-2005 as well as previous policy Circular No. 18, dated 10-1-2002, issued by the Ministry of Commerce and Industry, Directorate General of Foreign Trade, which clarify para No. 5.1 of the Foreign Trade Policy 2004-2009 updated as on 31-3-2005, permitting import of second-hand capital goods without any age restrictions under EPCG scheme, to the effect that second-hand capital goods of Indian origin shall not be permitted to be imported under EPCG Scheme. Commenting on the attitude of the petitioner-firm in not informing the 4th respondent regarding the 3rd respondent's rejection of the letter dated 21-4-2005, he further submitted that once the request of the petitioner for issuance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 3rd respondent, before referring the matter to the 1st respondent, decided to issue the EPCG licence in favour of the petitioner, on provisional basis and, on the direction of the Zonal Joint Director General of Foreign Trade, Chennai, he called for the petitioner to submit an undertaking to the effect that, in the event of the authority at the Headquarters/1st respondent not concurring with the decision to allow import of second-hand capital goods of Indian origin under EPCG Scheme, the petitioner would pay 100% of duty saved amount together with 15% interest thereon from the date of import of capital goods. It is the admitted case that the petitioner willingly submitted an undertaking to that effect in a stamp paper worth Rs. 100/-, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of their small unit, whereupon, the 3rd respondent granted provisional licence only on the condition that the petitioner would pay 100% of duty saved amount together with 15% interest thereon from the date of import of the machinery, if the Headquarters does not concur with the decision of ZJDGFT, Chennai, in granting the licence. The petitioner-firm did not choose to question the rejection order passed by the 2nd respondent as well as the rejection of appeal by way of review etc., rather, they willingly accepted the provisional grant of licence and also undertook to pay the duty with interest in the event of the Headquarters taking a negative decision. Having acted so, now, the petitioner has no locus standi whatsoever to question the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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