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TMI Blog2020 (4) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ided under clause (b) and clause (c) of para 4.42 of the Handbook of Procedures; however, in the facts of the present case in view of the fact that the Joint Director General of Foreign Trade has allowed substitution of name of the new entity and its IEC number with extension of export obligation period by six months under the directions of this court, it is not possible for him to extend such period on his own at the request of the petitioners. It is in these circumstances, that though the power of extension is vested in the regional authority, he may not be in a position to exercise such power unless permitted by this court. Therefore, it would be necessary for this court to issue appropriate directions to the concerned authority. The second respondent Joint Director General of Foreign Trade is directed to allow extension of appropriate period under paragraph 4.42 of the Handbook of Procedures upon charging of composition fee as applicable either under clause (b) or clause (c), as the case may be, and intimate the petitioners about the amount payable by them. Upon such intimation being received, the petitioners shall deposit such amount of composition fee within ten days of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igations in respect of the above referred two authorizations on or before 23.10.2019. The export obligation in respect of Advance Authorization No.0810086954 dated 3.3.2010 had been 1,38,758 kilograms in terms of quantity and F.O.B. value of the exported goods being ₹ 5,70,61,700/-. In case of the other Authorization No.0810090670 dated 21.7.2010, the export obligation in terms of quantity had been 2,77,517 kilograms and the F.O.B. value of the goods to be exported was ₹ 11,71,84,650/-. 3.2 It is the case of the petitioners that they have fulfilled the export obligations for both the authorizations in terms of quantity as well as in terms of F.O.B. value. However, the petitioners have taken a little more time over and above six months allowed by this court for fulfillment of export obligations for one of the authorizations, viz., advance authorization No.0810090670 dated 21.7.2010. The petitioners have approached this court seeking extension of the time limit for fulfillment of export obligation and also ordering regularization for fulfillment of the export obligation in respect of the above referred Authorization No.0810090670 dated 21.7.2010 by granting suitable ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period by six months from the date of substitution of IEC number of the petitioner, the said authority would not be in a position to exercise such power, and hence, the petitioners have been constrained to approach this court by way of the present application. It was, accordingly, urged that the relief as prayed for be granted. 5. Opposing the application, Mr. Parth Bhatt, learned senior standing counsel for the respondent No.3, submitted that paragraph 4.42 of the Handbook of Procedures, does not give power to extend beyond a particular period. It was submitted that in this case initially the export obligation was required to be fulfilled within the period granted by the authority and since such period has expired a considerable time ago, it is not permissible to extend such period by resorting to the provisions of para 4.42 of the Handbook of Procedures. It was submitted that, therefore such extension would amount to relaxation and hence, the matter would have to be referred to the Committee under para 2.58 of the Foreign Trade Policy. 6. This court has also heard Mr. Nikunt Raval, learned senior standing counsel for the respondents No.1 and 2. 7. From the facts and cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) However, extension in EO period in respect of an Advance Authorization issued for import of an input listed under Appendix 4J of HBP 2015-2020 or Appendix 30A of Hand Book of Procedures 2009-14 shall not be permitted by RA. (e) Whenever a ban / restriction is imposed on export of any product, export obligation period in respect of Advance Authorisation already issued prior to imposition of ban, would stand automatically extended for a period equivalent to the duration of ban, without any composition fee. 9. On a perusal of the provisions of paragraph 4.42 of the Handbook of Procedures, it appears that clause (b) thereof provides for extension of export obligation period upto six months from the date of expiry of the export obligation period subject to payment of composition fee of 0.5% of the shortfall in export obligation; and clause (c) thereof, provides for further extension of six months after first extension as in clause (b) can be considered by regional authority, provided authorisation holder has fulfilled minimum 50% export obligation in quantity as well as in value, on pro rata basis. This would be subject to payment of composition fee at the rate of 0.5% pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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