2006 (11) TMI 68

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....of the petitioner is that the petitioner is a 100% Export Oriented Unit (EOU). The petitioner is engaged in the manufacture of cotton yarn. The petitioner has effected deemed export in terms of the Export-Import Policy 1997-2002 against which the petitioner was allowed corresponding Domestic Tariff Area (hereinafter referred to as "DTA") sale entitlement. According to the petitioner, paragraph 9.9(b) of the Export Import Policy originally stipulated that 25 of the production in value terms may be sold in the DTA subject to payment of applicable Excise/Customs duty. That was amended with effect from 1-4-1999. As per the amendment, the DTA sale upto 50% of FOB value of exports may be sold in the DTA subject to payment of applicable duties. DT....

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....uch goods are permissible for procurement in terms of Paragraph 9.2 of the Policy, supplies made to bonded warehouses set up under 11.14 of the Policy and supply of goods against special entitlement of duty free import of goods. In terms of Paragraph 10.2(b) of the Export-Import Policy, supply of goods to EOUs or units located in EPZ or STPs or to EHTPs shall be regarded as "deemed exports". The Export Import Policy also confers benefit on such deemed exports under para 10.3 para 10.3(c). 4.According to the petitioner, the mandate of provisions of para 9.9, 9.10, 10.2 and 10.3 are categorical and clearly stipulates that the deemed exports shall be treated on par with exports while conferring attendant benefit. In other words, the sale of....

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.... 10 was introduced in the Export Import Policy. Each word is coined to serve different purposes. The petitioner's contention that the export and deemed export is one and the same is an incorrect obtainment in law. 6.I heard the argument of the learned counsel on either side and perused the material on record and considered the provisions with which reliance has been made by the parties and also the circular, which is the subject matter of attack. 7.On a reading of the expression "export" and "deemed export" with the context with which they are employed in the Policy and with reference to the Export Oriented Unit, a physical export is not a deemed export. Deemed export is defined in Chapter 10 of the policy. The concession granted in f....