DEPB entitlement despite advance licence use, where policy allowed certified copies and no express bar on dual scheme benefit existed.

Exports made under an advance licence limited to duty-free furnace oil imports could still qualify for DEPB benefit because the policy did not expressly bar the two schemes being used in that manner. The court noted that the export goods had borne duty on locally procured inputs, while the policy amendments stated that fuel permitted under SION would not be counted in fixing the DEPB rate. It also held that denial based on non-production of original shipping documents was unsustainable where certified copies could be accepted if the originals had already been filed before another authority. The DEPB claim was therefore maintainable and the adverse orders were unsustainable.

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Issues: Whether the petitioner could claim the benefit of the DEPB scheme in respect of exports for which it had also availed advance licence benefit limited to duty-free import of furnace oil, and whether denial of the DEPB claim on the ground of double benefit and non-production of original shipping documents was justified.

Analysis: The advance licences were used only for duty-free import of furnace oil, while other inputs used in manufacture were procured locally on duty payment. The export product had therefore suffered duty on the domestic inputs, and the policy amendments expressly provided that fuel allowed as an input under SION would not be taken into account while fixing the DEPB rate. The absence of any express prohibition against claiming DEPB on such exports, coupled with the clause permitting certified copies where originals had already been filed before another authority, meant that rejection of the DEPB claim on the ground of double benefit and insistence on originals could not be sustained. The restriction was not supported by the policy framework governing the two schemes.

Conclusion: The petitioner was entitled to claim DEPB benefits for the exports in question, and the orders denying such benefit, cancelling the import-export code and advance licence, and imposing duty, interest and penalty were unsustainable.

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