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TMI Blog2021 (7) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... The presumption in Clause (h) is that the scrips should be issued only after due scrutiny and, upon the slightest suspicion that the claim may be unacceptable, the Officer has to call for physical documents and decide the fate of the claim by way of a speaking order, if rejected. The issuance of the scrip thus pre-supposes due application of mind by R3 to all relevant stipulations. Clause 3.06 which sets out ineligible categories must thus be assumed, not just to have caught the attention of R3 but to have been thoroughly examined, prior to issuance of the scrip. A detailed procedure for cancellation of the scrips has been set out under Section 9(4) of the FTDR Act. In the absence of this procedure having been invoked, the categoric presumption is that R3 continues to hold the view that the scrips are valid - The explanation put forth for non-cancellation by Mr. Chandrasekaran is that the matter was subjudice. DHL logistics, the FTWZ, merely offers a facility to the petitioner to warehouse its consignments that are to be exported. The destination is decided by UTEXAM, which is the ultimate purchaser, which has paid the petitioner in USD for the consignment. The stipulation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as input tax and other available benefits. iv) The petitioner, wishing to avail the benefit under the Merchandise Exports from India Scheme (MEIS) which was part of the Foreign Trade Policy, effective 01.04.2015, made an application to R3 and was issued scrips 1, 2 and 3 by R3. These scrips were current for the period 2018 to 2020 and have not been cancelled at any time. Benefit under the MEIS Scheme is computed on the basis of 2% Free on Board (FOB) of the value of the transaction which is set-off against future imports. Thus, no cash refunds are contemplated. v) A request was made for registration of scrip Nos. 1 and 3 on 11.06.2018 and 19.06.2018 respectively. The original scrips and all required details were submitted. R2 was requested to issue a Telegraphic Release Advise (TRA) to the petitioner. vi) Certain other documents were called for in connection with the application and a personal hearing was also afforded to the petitioner. vii) R3, in the meanwhile, sought the details of the supplies made against all bills of exports confirming those in respect of which MEIS benefit had been sought. viii) Detailed responses were filed by the petitioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) In response to the argument put forth by R2 to the effect that the original document (two scrips) have been taken back by the petitioner, the petitioner would state that it is only for the purpose of ensuring their safety. In any event it is not the case of the revenue that had they been allowed to be retained by the respondents, R2 would have registered the same. In fact, there is no dispute that the impugned order of rejection would apply in regard to all three scrips. v) As regards the question of ineligibility to the benefit of MEIS Scheme, the petitioner relies on paragraphs 3.04/Chapter 3 of the Merchandise Exports from India Scheme, reading as follows: PART I Foreign Trade Policy Chapter 3 Exports from India Schemes 3.00 Objective The objective of schemes under this chapter is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs. 3.01 Exports from India Schemes There shall be following two schemes for exports of Merchandise and services respectively; (i) Merchandise Exports from India Scheme (MEIS). (ii) Service Exports from India scheme (SEIS). Merchandise Exports from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) CP Global (Excluding India) Delivery at FIZW at Mannur/Vallarpuram Village, Sirperumbudur Taluka, District Kanchipuram, TN 602 105 FTZW at Mannur/Vallapuram Village, Sriperumbudur Taluka, District Kanchipuram, TN 602 105 Invoicing/Billing Entity Utexam Logistics Limited Utexam Logistics Limited Product Name Cornmint Oil Redistilled (M07595) Cornmint Oil Tri-rectified M08377 Quantity in Kilogram 43,200 Kg 28,800 Kg Inco Term Delivered at FTZ Warehouse Delivered at FTZ Warehous Price USD $ 18.8 per Kg USD $ 20.4 per Kg Payment Terms Within 45 days from receipt of goods at FTZW Within 45 days from receipt of goods at FTZW ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing bill details as follows: DIRECTORATE GENERAL OF FOREIGN TRADE 44 Merchandise Exports From India Scheme E-COMMERCE VERSION ANF 3A Similar details in regard to shipping bills accompany the other two applications as well. 11. Upon a comparison of the above details contained in the bills of export of goods under which the petitioner has claimed duty drawback, with the bills of the parties to the transaction, I find that the numbers and date tally. It is thus clear that the export documents have been executed by the petitioner. The petitioner also confirms that the FTWZ has neither claimed nor been granted any benefit under MEIS Scheme in regard to the instant transactions. If at all such claims had been advanced, they would have been barred under the provisions of 3.06 (vii) of the policy note. 12. The impugned order reads thus: OFFICE OF THE AUTHORISED OFFICER JMATADEE FREE TRADE ZONE (P) LTD., PERAMBAKKAM ROAD, MANNUR VILLAGE, VALARPURAM POST, SRIPERUMPUDUR, KANCHEPURAM DISTRICT, TAMIL NADU - 602105 [email protected] F. No: MEIS/jindal drugs/JMFTWZ/01/2018 Date: 09.07.2019 To M/s. Jindal Drugs P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptable, the Officer has to call for physical documents and decide the fate of the claim by way of a speaking order, if rejected. The issuance of the scrip thus pre-supposes due application of mind by R3 to all relevant stipulations. Clause 3.06 which sets out ineligible categories must thus be assumed, not just to have caught the attention of R3 but to have been thoroughly examined, prior to issuance of the scrip. 15. Moreover, the provisions of Section 9(4) of the FTDR Act reads as follows: 9. Issue, suspension and cancellation of licence. - ......... (4) The Director General or the officer authorised under sub-section (2) may, subject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel any licence granted under this Act: Provided that no such suspension or cancellation shall be made except after giving the holder of the licence a reasonable opportunity of being heard. (5) An appeal against an order refusing to grant, or renew or suspending or cancelling, a licence shall lie in like manner as an appeal against an order would lie under section 15. 16. A detailed procedure for cancellati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he FTWZ. DHL, the FTWZ does not export the consignments but only facilitates such exports. The exports are thus, by the petitioner through DHL to a destination abroad. 22. To a query as to why the transaction was so structured, the petitioner explains stating that the consignments in question were, purchases by UTEXAM on behalf of Colgate Palmolive for supply at any number of the units of the latter. As and when the destination is decided, DHL is intimated of the same and the consignments shipped to that destination. 23. The exports in this case have already taken place at the point when the petitioner executes the relevant documents and the consignments are stored in the FTWZ, awaiting confirmation of the destination. This would avoid the circuitous route of shipment to UTEXAM at Ireland, and then onward to a final destination accompanied by multiple transportation costs and logistical complications. The role of DHL in this transaction is that of a warehouse and nothing more. The concept of 'ship to' and 'bill to', as used in this case, has been recognised under the GST regime, as commercial compulsions dictate, that transactions are to be structured in the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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