Statutory export policy prevails over departmental circulars, preserving duty drawback and DEPB benefits for EOU job work exports.

Departmental circulars cannot curtail entitlement to duty drawback or DEPB where the Export Import Policy, framed under the Foreign Trade (Development and Regulation) Act, 1992, confers that benefit. The statutory policy has binding force, and circulars inconsistent with it must yield. In the context of exports made through 100% EOU job work arrangements, the assessee's claim to drawback or DEPB remained available under the governing policy framework, so the Revenue could not deny relief by relying on contrary circulars. The High Court therefore affirmed the relief granted to the assessee and rejected the Revenue's challenge.

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Issues: Whether policy circulars issued by the department could restrict or deny the benefit of duty drawback and DEPB under the Export Import Policy framed under the Foreign Trade (Development and Regulation) Act, 1992 for exports made through 100% EOU job work arrangements.

Analysis: The dispute turned on the effect of departmental circulars vis-a-vis the statutory Export Import Policy. The policy had statutory force as it was framed under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The entitlement to drawback or DEPB, as recognized in the policy framework and the earlier binding decisions relied upon, could not be curtailed by circulars issued by the Central Board. The circulars relied upon by the Revenue were treated as inconsistent with the statutory policy and therefore incapable of denying the benefit otherwise available under the governing legal regime.

Conclusion: The circulars could not override the statutory policy or take away the assessee's entitlement to drawback or DEPB; the issue is answered in favour of the assessee.

Final Conclusion: The Revenue's intra-court appeals fail and the order granting relief to the assessee stands affirmed.

Ratio Decidendi: A departmental circular cannot curtail a benefit conferred by a statutory policy framed under delegated legislative authority, and any contrary circular must yield to the statute or statutory policy.

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