TaxTMI 
TaxTMI 
2015 (1) TMI 708
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....e petitioner, competent authority issued Duty Credit scrips dated 4.7.2013 in all thirteen in number worth Rs. 1,25,56,045/-, which can be encashed while importing goods specified in the Served From India Scheme. These scrips are transferable within the group company. Therefore, petitioner requested the Director General of Foreign Trade to permit utilisation of scrips by GHIAL. Petitioner submitted a representation dated 20.12.2013 requesting to grant such permission. In response, by letter dated 12.2.2014, the petitioner was asked to furnish documentary evidence as per para 9.28 of the Foreign Trade Policy for the years 2009-2014 duly attested by Registrar of Companies to process the case further. On application, the Registrar of Companies....
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....ly a different meaning to what is contained in para 3.2.7 read with para 9.28 of Foreign Trade Policy. Therefore, any such clarification given by the Policy Interpretation Committee, is wholly illegal, without jurisdiction and competency and rejection of the request of the petitioner on the ground that petitioner does not hold minimum 26 % shareholding in GHIAL is contrary to Foreign Trade Policy. 4. Learned senior counsel further contended that the scheme is a beneficial provision and has to be liberally construed. The scheme is to encourage foreign trade. Thus, facility of utilisation of scrips obtained on account of such foreign trade carried out by one company be utilised by another company is also intend to encourage foreign trade. ....
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.... it on account of exports carried out, to that other company. 6. The decisions given by the Policy Interpretation Committee and applied by the Director General are enclosed to the counter. In cases of M/s. Tata Teleservices Maharastra Limited and M/s.Essar Oil Limited, the facts are identical and request was rejected by applying the provisions in para 9.28 of the Foreign Trade Policy strictly. He therefore submits that decision communicated to the petitioner is valid and is not erroneous nor illegal or arbitrary warranting interference by this Court. 7. With an objective to facilitate imports and to augment export, Foreign Trade (Development and Regulation) Act, 1992 (Act 22 of 1992) was made. From time to time Central Government noti....
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....Para 9.28 defines Group Company as under: 9.28 Group Company : Group company means two or more enterprises which, directly or indirectly, are in a position to:- (a) Exercise twenty six percent, or more of voting rights in other enterprise; or (b) Appoint more than fifty percent of members of board of directors in the other enterprise. For group companies to claim benefits or have their exports counted for benefits to be claimed by another member of group, the group company should have been in existence at least 2 years prior to date of application under any of export promotion schemes notified in Foreign Trade Policy. 11. Cumulati....