Court rules in favor of petitioner challenging export waiver denial, emphasizes policy compliance importance

The court granted relief to the petitioner in a case challenging the rejection of their application for waiver of submitting a bill of export for SEZ supplies by the EPCG Committee. Citing the EPCG Committee's power to grant relaxation from policy requirements under the Foreign Trade Policy 2009-2014, the court emphasized that the absence of a bill of export should not lead to the denial of benefits for exports to SEZ. The court set aside the EPCG Committee's decision, ruling that the benefit of exports to SEZ should not be denied solely due to the absence of a bill of export, ultimately granting the relief sought by the petitioner.

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Issues:
Challenge to rejection of application for waiver of submission of bill of export for SEZ supplies by EPCG Committee.

Analysis:
The petitioner sought relief through a writ of certiorari to quash the decision of the EPCG Committee rejecting their application for waiver of submitting bill of export for SEZ supplies. The primary contention was the inability to redeem the EPCG License due to this rejection, resulting in being placed on the denial entry list and inability to apply for licenses under the Foreign Trade Policy. The EPCG Committee's power to grant relaxation from policy requirements was highlighted, as per the Foreign Trade Policy 2009-2014. The court noted a similar case precedent where the issue was resolved in favor of the petitioner, emphasizing that the absence of a bill of export should not lead to the denial of benefits for exports to SEZ.

The court referred to the decision in Larsen & Toubro Limited vs. Union of India, where a similar issue was resolved in favor of the petitioner. The State's challenge to this decision in the Apex Court was dismissed, establishing the finality of the judgment. Subsequently, the court followed this precedent in other cases, affirming that the absence of a bill of export should not result in the denial of benefits for exports to SEZ if other valid documents evidence the exports.

The court set aside the impugned minutes of the EPCG Committee, ruling that the benefit of exports to SEZ should not be denied solely due to the absence of a bill of export. Additionally, attention was drawn to a deficiency letter from the Additional Director General of Foreign Trade, highlighting the sole objection of the absence of a bill of export for not accepting the supplies made to SEZ. The petitioner had since submitted the revised ANF-5B, addressing this objection. Consequently, the petition was allowed, granting the reliefs sought in the prayer clauses.

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