DEPB benefits for DTA supplies to SEZ units were held unavailable before 1.4.2003 under the notification scheme.

DEPB benefits for supplies from DTA to SEZ units were introduced by the 5.6.2002 notification under the Export and Import Policy 2002-2007, but the notification did not itself make the benefit operative for completed supplies from that date. The Court noted that the departmental notifications governing receipt and acceptance of DEPB took effect only from 1.4.2003, so administrative implementation of the benefit was tied to that later date. Earlier decisions relied on by the petitioner were found inapplicable because the facts did not show prior governmental permission attracting issue estoppel. The claim for DEPB benefit for supplies made before 1.4.2003 therefore failed.

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Issues: Whether the petitioner was entitled to DEPB benefits for supplies made from DTA to SEZ units from 5.6.2002 on the basis of the notification issued on that date, and whether the later procedural notifications restricting the benefit to supplies made from 1.4.2003 could be ignored on the basis of issue estoppel.

Analysis: The Export and Import Policy 2002-2007 commenced on 1.4.2002 and the notification dated 5.6.2002 introduced the DEPB benefit for supplies to SEZ units, but the notification did not state that the benefit would operate from that date for completed supplies. The Court noted that the corresponding departmental notifications governing receipt and acceptance of DEPB were issued with effect from 1.4.2003, and therefore the administrative implementation of the benefit for such supplies was tied to that later date. On the facts, the earlier decisions relied upon by the petitioner were held inapplicable, as the case did not disclose a situation where the Government had already permitted the benefit in a manner attracting issue estoppel.

Conclusion: The petitioner was not entitled to DEPB benefit for supplies made prior to 1.4.2003, and the challenge to the rejection of the claim failed.

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