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TMI Blog1986 (7) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... n as specified in the First Schedule to the Customs Tariff Act and the whole of the additional duty leviable thereon under Section 3 of the Customs Tariff Act. Item No. 38 in the First Schedule is "Iron and Steel and Articles thereof". Appendix 19 of Import Policy for April 1981- March 1982 deals with Duty Exemption Scheme. It reproduces the Notification issued by the Ministry of Finance (Department of Revenue) relating to the grant of Duty Exemption benefits against Advance Licences. Annexure V to Appendix 19 sets out the input-output norms of wastage as approved by the Advance Licensing Committee and prescribes that the applications of the parties whenever received for the grant of advance licences are cleared on the basis of these norms. At Serial No. 2 of this annexure is the description of the Export Product of Stainless steel pattern. The raw-material which can be imported under Advnace Licence is stainless steel sheets/strips/bars and rods and the norms prescribed are in respect of 1 kilogramme of export product, 1.80 kg. will be allowed to be imported and out of that, there would be duty exemption benefit in respect of 1.60 kg. 2. On the basis of the norms, the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on December 1, 1980 complaining that the norms cannot be altered. The Chief Controller thereafter called upon the petitioners to furnish bond with Bank guarantee and sought amendment of the earlier bond given by the petitioners. The petitioners had no objection to give further Bank guarantee and to amend the bond. On January 26, 1982, the Joint Chief Controller, Import, amended the Advance Licence and Duty Exemption Entitlement Certificate setting out that the total quantity of import would be only 109.4 Metric Tonnes of C.I.F. value of Rs. 22,97,400/- and out of which duty free quantity would be 94.6 Metric Tonnes. The petitioners imported two consignments of 32 Metric Tonnes and 50 Metric Tonnes and the same were cleared on February 1, and February 4, 1982 respectively. In March 1982, the consignment of 26 Metric Tonnes arrived in Bombay. On March 26, 1982, the Chief Controller of Imports addressed letter to the petitioners permitting import of 108 Metric Tonnes instead of 94.6 Metric Tonnes under Duty Exemption benefit but the letter did not give any indication of increase in the total quantity of permissible import. Thereafter, large correspondence transpired between the pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of credit on the basis of Advance Licence issued by the Joint Chief Controller and it is not permissible subsequently to amend the licence and put the petitioners to great disadvantage. There is considerable merit in the submission of the learned counsel. On behalf of the Department, return dated August 2, 1982 sworn by G.R. Nair, Deputy Chief Controller of Imports and Exports, Bombay was filed at the stage of admission. The Department did not file any return in answer to the petition. In the return filed by Shri Nair, it is stated in paragraph 5 that in accordance with paragraph 8 of the Duty Exemption Scheme and the Import Policy, the Advance Licencing Committee was informed ex-post-facto about the issue of advance licence to the petitioners. It is further claimed that the Advance Licencing Committee felt that as the petitioners were exporting only stainless steel spoons, the input-output norms approved for stainless steel cutlery could not be adopted and the quantity of import of stainless steel sheets should be reduced. The return further sets out that the Office of the Licencing authority at Bombay accordingly proceeded to amend the licence. Shri Shah, learned counsel ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tity set out originally in the Advance Import Licence i.e. 148 Metric Tonnes and are also entitled to claim Duty Exemption in respect of 151.6 Metric Tonnes. 5. Shri Shah then submitted that inspite of the fact that the petitioners imported the entire quantity of 148 Metric Tonnes of stainless steel in pursuance of the interim order passed by this Court, the petitioners had not cared to carry out their export obligation. Shri Shah complains that the export obligation was to be carried out within a certain stipulated period but the petitioners did not do so even till today and in view of this default on the part of the petitioners, relief should not be granted. Shri Parikh controverted the submission by pointing out that the petitioners were ready and willing to perform the export obligation, but are prevented from doing so for the failure of the Department to extend the period for fulfilment of the obligation. Shri Parikh expressed his willingness to fulfil the export obligation within a reasonable time from the date when the DEEC book is duly revalidated and extended by the respondents. In my judgement, it is necessary to give direction to the Department to revalidate and extend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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