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TMI Blog2020 (2) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct. When admittedly, the petitioner has not imported any raw material other than the fuel under the Advance Licence Scheme, which is excluded as per the amended provision, the net result is the petitioner has not availed any benefit under the Advance Licence Scheme. To avail the benefit of both Advance Licence Scheme and DEPB scheme, the petitioner has to perform the export obligation of ₹ 30 crores which he has fulfilled. The petitioner has purchased the raw material which has gone into use of manufacturing products and therefore, the petitioner is entitled for refund of the said duty paid. If the petitioner opts for duty Drawback Scheme the rate at which he is entitled to the duty drawback is 3% and under DEPB Scheme, he is entitled to 4%. The petitioner availed DEPB scheme which is favourable to him. The Learned Single Judge has rightly held that the petitioner has not imported any raw material other than fuel under the Advance Licence Scheme which is excluded as per the amended provision - Appeal dismissed. - Writ Appeal No. 1352 of 2012 (GM-RES) - - - Dated:- 4-2-2020 - Ravi Malimath and Ashok S. Kinagi, JJ. Shri Jeevan J. Neeralgi, Advocate, for the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the import of any other raw material listed in SION for manufacturing the HCGMB. 4. Para 4.3 of Chapter 4 of Foreign Trade Policy confers post export Duty Entitlement Pass Book (DEPB for short) benefits with the basic objective of neutralizing the incidence of customs duty on the import content of export product. This neutralization is by way of granting certain percentage of Free On Board (FOB for short) value of the exports as duty credit and the percentage is based on fixed SION the norms for manufacturing of HCGMB is : High Chromium Grinding Media Balls for Cement Grinding Bills (Composition Cr.16-17%, Mo-0.6.-0.7%, Si-0.6-0.7%, C-1.5-2.5%, Fe Balance 1. Mild Steel Scap 0.90 MT 2. H.C. Ferro Chrome 292 Kg 3. Ferro Molly (mo-75%) 10 Kg 4. Ferro Silicon (Silicon 75%) 10 Kg It may be noted that fuel is not appearing in the norms list, listed above. 5. From para 4.1.3 of the Foreign Trade Policy provides an advance licence is issued to allow duty free import of inputs which are physically incorporated in the export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration of fulfilment of export obligation. The Foreign Trade Development Officer informed the petitioner through a letter dated 8-12-2006 stating that not a single shipment had been effected against their advance licence and export obligation period had expired on 30-11-2006. The petitioner was called upon to submit the export obligation documents as prescribed under para 4.25 Hand Book of Procedures within two months of expiry of the export obligation period as per the para 4.24. The petitioner vide letter dated 26-12-2006 stated that they were entitled to the benefit under DEPB as well as duty free imports of furnace oil for captive power generation to the extent mentioned in General Note for fuel towards the same export of finished goods. The petitioner further stated that it had approached the Policy Relaxation Committee/Grievance Committee in the Ministry of Commerce and Industry vide letter dated 2-12-2006 seeking clarification in respect of the issue in dispute and requested that no action be initiated against it, pending their representation before the Policy Relaxation Committee/Grievance Committee. The respondent No. 3 passed an ex parte order-in-original dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aptive power plant. (b) Fuel should be allowed either under specific SION or as per the general fuel policy for productions for which SION exists or as per general fuel policy under paragraph 4.7 or under ad hoc norms. (c) Fuel should be allowed only against an actual user licence and therefore, fuel shall not be allowed for imports against DFRC, which is transferable in nature. (d) Even where fuel is included as an input under SION, it shall not be taken into account while fixing the DEPB rate for such products against which fuel has been allowed as an input. (e) The applications of fixation of fuel entitlement for new sectors and modification of the existing entitlement as per the General Note for Fuel in the Handbook of Procedures (Vol. 2) would be made to the Advance Licensing Committee along with the requisite date in Appendix 10H pertaining to the Data Sheet for Fuel Rate . The Advance Licence holders wishing to procure the fuel indigenously may apply for an Advance Release Order of Back to Back Inland Letter of Credit. The indigenous supplier supplying fuel shall be entitled for deemed export benefits given in para 8.3(a), (b) (c) of the Policy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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