Reasoned policy relaxation orders are required for deemed export benefit claims; unreasoned refusal was remanded for fresh consideration.

A policy relaxation request affecting deemed export benefits and Terminal Excise Duty refund under the Foreign Trade Policy must be decided by a reasoned order. The Delhi HC noted that the Policy Relaxation Committee rejected the request without explaining why hardship was not established, even though the claim had earlier been declined on the ground that the Import Export Code did not exist at the relevant time. Because a refusal affecting substantive fiscal entitlement cannot rest on an unreasoned determination, the rejection was held unsustainable and the matter was remanded for fresh consideration in accordance with law.

---

---

Issues: Whether the rejection of the request for deemed export benefits and Terminal Excise Duty refund by the Policy Relaxation Committee, recorded without reasons, was sustainable and whether the matter warranted fresh consideration.

Analysis: The claim for deemed export benefits was examined under para. 7.03 of the Foreign Trade Policy, and the matter had earlier been rejected on the basis that the Import Export Code was not in existence at the relevant time. The Policy Relaxation Committee again declined relief by stating that it found no merit or hardship, but the decision disclosed no reasons explaining why the request failed to establish hardship. A rejection affecting substantive entitlement cannot rest on an unreasoned and non-speaking determination, particularly where the applicant seeks relaxation under the policy framework.

Conclusion: The rejection was unsustainable and the matter was remanded to the Policy Relaxation Committee for fresh consideration in accordance with law.

Final Conclusion: The petitioner secured reconsideration of its relaxation request, and the impugned refusal was set aside with directions for a fresh decision within the stipulated time.

Ratio Decidendi: A policy relaxation request affecting entitlement to fiscal benefits must be decided by a reasoned order, and an unreasoned refusal is liable to be set aside and remitted for fresh consideration.

---