2013 (1) TMI 620

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....as engaged in the manufacture and sale of fluorescent tubes. On 17 June 1993, the First Respondent allotted in the name of Apar Limited a file number for the issuance of a value based advance license with DEEC books for the import of glass tubes and other material with a condition of export obligation as provided under the Export and Import Policy for 1992-1997 ('Exim Policy'). On 5 July 1993, Apar Limited exported 11,500 Fluorescent Tube Lamps to Singapore under shipping bill no.515202. On 13 August 1993, a value based advance license was issued by the First Respondent (bearing No.000316317 for a CIF value of Rs.1,12,591.63. together with a DEEC book for the import of glass tube shells and other material. Under the terms of the license, Ap....

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....exported were, in fact, manufactured by GE Apar Lighting Private Limited. The Appellate Authority took note of the submission that GE Apar Lighting Private Limited was a spun off company controlled by Apar Limited, but since no documentary evidence was produced in that regard, the defense was not accepted and the imposition of the penalty was confirmed. 4. Learned Senior Counsel appearing on behalf of the Petitioner submits that :     (i) Under a scheme of arrangement dated 24 December 1992, the lamps division of Apar Limited was spun off to a company by the name of Apar Lamps Private Limited. On 22 January 1993, the name of Apar Lamps Private Limited was changed to GE Apar Lighting Private Limited;     (ii)....

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....fulfillment of the export obligation;     (ii) The advance license would indicate that there was no supporting manufacturer indicated;     (iii) Admittedly, though the goods were exported by the Petitioner, the Petitioner had not manufactured the goods. Consequently, there was a breach on the part of the Petitioner to fulfill the export obligation as a manufacturer exporter as a result of which the imposition of the penalty was fair and proper. 6. The Exim Policy for 1992-1997 stipulates in paragraph 48 that an advance license was issued for the duty free import of inputs. Such a license was to be issued in accordance with the license and policy and procedure in force on the date of the license and was to b....

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....quirement that within thirty days of the date of expiry of the export obligation period, the licensee was to submit documents to prove the fulfillment of the export obligation imposed under the license. As a manufacturer-exporter, the Petitioner was obliged to manufacture and export goods of the description and FOB value as stipulated in the advance license. The export, as paragraph 66 of the Exim Policy permitted, could be effected upon the receipt of an application under the scheme by the licensing authority towards the discharge of the export obligation. That is how the export was effected on 5 July 1993 after the receipt of the application for a license on 16 June 1993, but before the issuance of the actual license on 13 August 1993. Th....