9911796707
TMI Blog1998 (11) TMI 129X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ltd., Delhi-26 which was issued by the office of the Joint Director General of Foreign Trade, New Delhi for the import of non-magnetic stainless steel sheets/coil made of AISI-304. Both the licences relate to the policy year 1994-1995. The licences were issued under the Duty Exemption Entitlement Scheme. As per the Import-Export Policy 1992-1997 such licences are transferrable on the licencee fulfilling the export obligation and getting necessary endorsement as to transferability from the Licencing Authority. The original licence holders in both the licences, after performing their export obligation, got the necessary endorsement of transferability and transferred the same in favour of the petitioner. By virtue of such transfer, the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms - Grade VII, after perusal of the explanation submitted by the petitioner, has ordered that the nexus has to be established. Following this endorsement, the Deputy Commissioner, the Assessing Officer, has made an endorsement in the Bill of Entry that since the importer was unable to prove the nexus, the importer has to either produce the valid advance licence or pay duty on import has made an endorsement on 4-4-1996. Thereafter the petitioner sent a letter dated 8-4-1996, informing the Deputy Commissioner of Customs that nexus has to be established only with reference to the chemical composition and not with regard to the thickness, as demanded by the authorities. Though the petitioner has asked for personal hearing in the said letter, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned under the specification. Subsequently, upto March, 1994 the policy was revised and under Note No. 2 of the General Note, there was further clarification in which for some of the exports of steel products whether semifinished/finished the criteria of conformity was restricted to only chemical composition and for the other items of steel thickness was insisted. Subsequently upto March, 1995 it was further clarified under Note No. 1 of General Note explaining the forms of steel products whether finished or semifinished. On 29-6-1995 under public notice the word `thickness' appearing in Note No. 1 to General Note was deleted. By taking advantage of the deletion, the petitioner, by letter dated 18-3-1996 have stated that there is no need to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensing authority. The petitioner is the purchaser of those licences after it changed hands. Under the policy the petitioner can either himself import the material under the licence or he can sell the licence. In the original licence there is no specification of the thickness and hence the authorities has to satisfy with regard to the conformity of the chemical composition. Moreover, the nexus has to be established only in respect of the original licensee and it cannot be insisted with regard to the transferees. Hence the endorsement made by the officials are without any jurisdiction. 8.On the contrary, the learned Counsel for the respondents contended that the petitioner has claimed the benefits of the subsequent notification wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eas and Properties (Private) Limited v. Union of India [AIR 1991 Bombay 273] wherein it has been held as follows : "Thus, strictly speaking, it is not quite correct to say that the object of the scheme is only to provide to the Registered Exporters, to some extent, by way of import replenishment, the essential raw materials required in the manufacture of products exported. The REP licences being freely transferable can be and are sold by the Registered Exporters and they make profit out of it. The object of the Scheme, to some extent, is thus diluted. Therefore, it can be reasonably inferred that the object of the Scheme is not merely to provide a percentage of some of or all the raw materials used by the Registered Exporters in the produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mes further clear when it is kept in view that all powers in this regard vest in the Licensing Authority who in terms of Para 8 of Appendix 17 is empowered to ensure that the REP licences are issued for the items which are used by the Registered Exporter in the manufacture of products they export. In case a licence is wrongly issued for an item, he has the power to cancel the licence. In case the licence has already been used before irregularity or mistake comes to his notice, the Licensing Authority can take appropriate steps against the Registered Exporter. All this, to our mind, shows that whether a licence is issued for a particular item properly is something between the Licensing Authority and Registered Exporter. But once the licence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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