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TMI Blog2004 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... mmarised thus : (a) The petitioners applied before the Development Commissioner for permission to set up its unit under EOU Scheme for import of used and unserviceable automotive diesel engines, free of Customs duty for reconstructing them in its unit and exporting those after for such reconstruction. The Development Commissioner after being satisfied about the process relating to reconstruction of the imported unserviceable diesel engines, issued the letter of permission ("LOP") as provided in Clause 7 of Chapter 9 of the Exim Policy to the petitioner No. 1 for establishment of a new undertaking for the manufacture of reconstructed diesel engines for automotive use. (b) According to Exim Policy such 100% EOU are permitted under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gines under Para 9.9 (b) thereof in DTA. (f) The Development Commissioner by its letter dated October 23, 2001 duly confirmed that no import licence is required for DTA sale as permitted by him under sub-clause (b) of Clause 9 of Chapter 9 of the said Exim Policy. (g) After completion of export commitments in June 2003, the petitioners applied for renewal of the said permission granted by the Development Commissioner for sale of 1500 pieces of reconstructed diesel engines in the DTA by the petitioner and the Development Commissioner by letter dated July 24, 2003, extended the time for such DTA sale of 1500 pieces reconstructed diesel engines for a value up to Rs. 105 lac for a further period till September 23, 2003. (h) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of exports subject to fulfilment of Net Foreign Exchange performance/obligations in the Domestic Tariff Area, i.e. within the country, subject to payment of all applicable Customs and Excise duties after compliance with all statutory obligations including obtaining the permission of the Development Commissioner of the concerned free Trade Zone/Special Economic Zone. (b) This facility of DTA sale is however, not available to units engaged in re-conditioning/repairing/remaking/re-engineering etc. as provided in Para 9.22 of 1997-2002 Policy and Para 6.17 of the current Policy. (c) In terms of Para 3.31 of the Policy "manufacture" means to make, produce, fabricate, assemble, process or bring into existence, by hand or by mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of cancellation was without jurisdiction, arbitrary, unreasonable and the right accrued in favour of the petitioner by virtue of earlier permission, cannot be taken away without giving an opportunity of hearing. 4. Mr. Pal the learned Counsel appearing on behalf of the petitioners, has vehemently contended that the petitioners are engaged in reconstruction of the old engines and the said work of reconstruction cannot be equated with the word "remaking" or "reconditioning" so as to attract the provision contained in 9.22 as alleged. According to Mr. Pal, the respondent authority, thus, acted without jurisdiction in bringing the case of reconstruction within the purview of "remaking" or "reconditioning". Mr. Pal next contends that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kapoor lastly contends that, although in the letter annexed to the affidavit-in-opposition, the order of cancellation of permission was conveyed to the petitioners by Assistant Development Commissioner but the order itself was passed by the Development Commissioner and in support of such contention, he has placed before this Court original records showing that the Development Commissioner himself passed a direction for cancellation. Mr. Kapoor thus, prays for rejection of the writ application. 8. After hearing the learned Counsel for the parties and after going through the materials on record, I am of the view that the question whether the petitioners are really "reconstructing" the engines or are, in fact, "remaking" or "recondition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be fair to give an opportunity of hearing to the petitioners to whom already a permission was granted for sale in DTA. 10. It is apparent from the record produced by Mr. Kapoor that in revoking earlier permission of sale, no further opportunity of hearing was given to the petitioner and no detailed reason was also given in the order. 11. According to the definition of licence indicated in Section 2(g) of Foreign Trade (Development and Regulation) Act, 1992, licence means a licence to import or export and includes a Customs clearance permit and any other permission issued or granted under this Act. According to Section 9(4), the Director General or the officer authorises under sub-section (2) of that section may subject ..... X X X X Extracts X X X X X X X X Extracts X X X X
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