2017 (10) TMI 225 - HC - Customs

High Court grants interim relief for duty-free imports with conditions

Chemico Synthetics Limited And India Glycols Limited Versus Union of India & ORS.

The High Court granted interim relief to the Petitioners, allowing duty-free imports against specific conditions for fulfilling pre-1st July 2017 export ... Advance Authorization (AA) license - duty free exports - Held that: - The Petitioner will furnish to the Customs Department the entire list of its AAs that are valid as on 1st July, 2017 and a list of the export orders placed on the Petitioner prior to 1st July, 2017 - the above interim direction will only apply to those imports which are made by the Petitioner for fulfillment of its export orders placed with it prior to 1st July, 2017 and not to any export order thereafter. Issues:Petitioner seeking permission for duty-free imports against unexpired Advance Authorization licenses issued before 1st July 2017.Analysis:The High Court addressed the issue raised by the Petitioner in three petitions seeking permission to make duty-free imports against Advance Authorization (AA) licenses issued before 1st July 2017. The Court noted the similarity in prayers across the petitions and referred to a previous order in a similar case. The Court highlighted the interim directions issued in the previous case, allowing the import of raw material subject to certain conditions. Consequently, the Court issued interim directions in the present case as well. These directions included permitting Petitioners to clear imports for export orders placed before 1st July 2017 without additional levies, subject to quantity and value specified in the AA licenses. Customs verification and undertaking by Petitioners were mandated to ensure compliance and payment of IGST in case of failure to fulfill export obligations.The Court further directed Petitioners to provide lists of valid AAs and export orders placed before 1st July 2017. Importantly, the interim directions applied only to imports for pre-1st July 2017 export orders. The Court set timelines for filing replies and rejoinders, emphasizing compliance with the directions. Additionally, the Court issued further directions, requiring the Petitioner's counsel to provide import lists to the Central Government Standing Counsel for communication to Customs Commissionerates. The order was to be shared with the Central Board of Excise and Customs (CBEC) for dissemination to all Commissionerates, ensuring compliance.In conclusion, the High Court's judgment granted interim relief to the Petitioners, allowing duty-free imports against specific conditions for fulfilling pre-1st July 2017 export orders. The Court's detailed directions aimed to regulate the process, ensure compliance, and safeguard revenue interests, highlighting the importance of fulfilling export obligations and paying applicable duties in case of non-compliance. The Court's proactive approach in issuing comprehensive directions showcased a balanced consideration of the Petitioners' requests and the legal framework governing such transactions.