TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 57
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....ht a direction upon the respondents, specially respondent no.3 to reimburse the Central Sales Tax (hereinafter referred to as CST) paid on goods purchased by it from EOUs or from Special Economic Zone (hereinafter referred to as SEZ) units in accordance with the provisions of para 6.11(c)(i) of the Foreign Trade Policy (hereinafter referred to as FTP), 2004-2009/ 2009-2014 read with procedure prescribed under Appendix 14-I-I of the Hand Book of Procedures. The Ministry of Commerce and Industry, Government of India in accordance with the provisions of Section 5 of The Foreign Trade (Development and Regulation) Act, 1992 formulated and issued Foreign Trade Policy, 2004-2009 for export and import of goods and services. The same policy was adopted and incorporated as Foreign Trade Policy, 2009-2014 w.e.f. 27th August, 2009. The said policy, which has a statutory force vide para 6.11 provides for certain incentives to the export units and inter alia provides that in addition to those incentives, EOU, Electronics Hardware Technology Park (hereinafter referred to as EHTP) units /Software Technology Park (hereinafter referred to as STP) units /Bio Technology Park (hereinafter referred to....
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....dditional duty of excise levied on fuel under the Finance Acts would also be admissible. (iv) CENVAT Credit on service tax paid. Appendix - 14-I-I Procedure : (i) The unit shall present its claim for reimbursement of CST in the prescribed form (Annexure -I) to the Development Commissioner of the SEZ concerned or the designated officer of the EHTP /STP. ...................... ...................... (xi) The disbursing authority for the claim of reimbursement of CST will be Development Commissioner /designated officer of EHTP /STP who will make payment to the units. All claims shall be subjected to post audit. The petitioner purchases raw materials for manufacturing purposes from other EOU /SEZ /Domestic Tariff Area (hereinafter referred to as DTA) on payment of CST @ 2% against Form "C" provided under the provision of Central Sales Tax Act, 1956 (hereinafter referred to as the CST Act). In the light of the above policy and the procedure, the petitioner, who had paid CST on the raw material purchased, submitted claim for refund of the CST for the period of July to September, 2014 and October to December, 2014 plus January to March, 2015 to the STPI on the goods purchased fro....
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....1(c)(i) of the FTP has to be read in conjunction with Clause (a) of paragraph 6.11(c)(i) of the FTP. There is no dispute to the fact that the petitioner is an EOU and is procuring raw material from other EOU or SEZ units but not necessarily from the DTA and is manufacturing of finished products in India. Therefore, simplicitor in accordance with paragraph 6.11(c)(i) of the FTP, petitioner is entitled for reimbursement of CST paid by it on the raw material so purchased. The aforesaid paragraph 6.11(c)(i) of the FTP is clear enough and it categorically states that in addition to referring to the incentives provided under Clauses (a) and (b) before it, all EOU are entitled to reimbursement of CST on goods manufactured in India. This is an independent Clause and has nothing to do with incentives provided in Clauses (a) and (b) before it. The use of the expression "in addition to" in Clause (c) of paragraph 6.11 of the FTP clearly denotes that the benefit of reimbursement of CST admissible inter alia to EOU is addition to any other incentive, which may have been provided earlier. Therefore, the aforesaid Clause (c) is not dependent upon Clauses (a) and (b) of paragraph 6.11 of the FT....
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....ipulation contained in paragraph 6.11(c)(i) of the FTP, which does not provide for the source of procurement of the goods. Thus, the above circular is in conflict with the provisions of the FTP and the respondent no.3 is not justified in refusing reimbursement of CST to the petitioner on the goods, which had procured from other EOU and not from DTA. A similar controversy in respect of a similar communication dated 11.01.2014 addressed by the Under Secretary to the Government of India, Ministry of Commerce and Industry, Department of Commerce to the Deputy Director General of Foreign Trade was the subject matter of challenge before the Madras High Court. The petition was allowed and reimbursement of CST was permitted to the petitioner therein in terms of paragraph 6.11(c)(i) of the FTP, 2009-14. The matter was taken up in appeal to the Division Bench. The Division Bench dismissed the appeal holding that having regard to scheme of chapter 6 of the FTP and the plain reading of provisions of paragraph 6.11(c)(i) makes it clear that even purchases of the goods from EOU as against DTA unit by an EOU would entitle it to seek reimbursement of CST. In view of reasons recorded above and t....