TaxTMI 
TaxTMI 
2018 (10) TMI 116
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....ter 'PRC') - constituted in terms of Paragraph 2.57(b) of the Foreign Trade Policy (FTP) - of the Directorate General of Foreign Trade (DGFT) rejected the petitioner's application for the second extension of validity of the Duty Free Import Authorisation on the ground that the petitioner was unable to establish a case of genuine hardship. By the impugned order dated 06.09.2016, the PRC rejected the petitioners application of review of the impugned decision dated 23.02.2016. And, by the impugned order dated 06.07.2017, the Director General of Foreign Trade (DGFT) rejected the petitioner's request after affording the petitioner a hearing. Facts 2. On 7th February 2012, the petitioner had received a bulk deemed export order for supply of....
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....d to wait for the right time to purchase the material because of inherent limitation of availability of resources. The petitioner also contested the policy of granting only one revalidation. He contended that the same does not hold good once an exporter has fulfilled its export obligation prior to the import. 7. The petitioner's application was considered and rejected by the PRC at a meeting held on 23.02.2016, principally, on the ground that the reasons provided by the petitioner only integrated commercial risk and not genuine hardship. 8. Aggrieved by the aforesaid decision, the petitioner filed an application on 2nd June, 2016 seeking review of the said decision (dated 23.02.2016), inter alia, claiming that since the first extensio....
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....nuine hardship and adverse impact on trade to any person or class or category of persons from any provision of FTP or any Procedures. While granting such exemption, DGFT may impose such conditions as he may deem fit after consulting the Committees as under: Sl.No. Description Committee (a) Fixation/modification of product norms Norms Committees (b) Nexus with Capital Goods (CG) and benefits under EPCG Schemes EPCG Committee (c) All other issues Policy Relaxation Committee (PRC) 2.59 Personal Hearing by DGFT for Grievance Redressal (a) Government is committed to easy and speedy redressal of grievances from Trade and Industry. Paragraph 2.58 of FTP provides for relaxation of Polic....
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....the petitioner is not entitled for extension of the validity of the term of the import authorization beyond the period of six months. It is in this context that the petitioner had applied for relaxation of the said condition in terms of Paragraph 2.58 of the FTP. As is apparent from the plain language of the Paragraph 2.58 of the FTP, the DGFT is empowered to grant exemption, relaxation or relief from the provisions of FTP or any procedure if he so deems fit. However, it is important to note that such exemption, relaxation or relief can be only granted if it is in public interest and on the grounds of genuine hardship and adverse impact on trade. 14. In the present case, the PRC had considered the petitioner's request and had concluded t....
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....at the petitioner had not set up a case of any unexpected hardship or any emergent situation that had precluded the petitioner from completing the imports. Essentially, the petitioner had sought extension of the Duty Free Import Authorization on the ground of commercial expediency. The PRC was of the view that since the petitioner had not set up a case of genuine hardship, it was not entitled to any relaxation in terms of Paragraph 2.58 of the FTP. 19. This Court is unable to accept that the said decision is arbitrary, unreasonable or otherwise falls foul of Article 14 of the Constitution of India. 20. The Division bench of this Court in NOCIL Ltd v. The Policy Relaxation Committee & Ors. : 2017 (165) DRJ 170 had observed that "the po....
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....our months. The DGFT noted that, in this manner, the petitioner had secured a Duty Free Import Authorization which was valid for a period longer than those issued to other exporters. 23. The DGFT was also of the view that the petitioner had not provided any reasons which indicated any genuine hardship. 24. This Court finds no fault with the aforesaid decision. Even if the reasoning indicated by the DGFT is ignored, there is no denying the fact that the petitioner had not made out a case of genuine hardship. 25. The learned counsel appearing for the petitioner had further contended that although the term of the Duty Free Import Authorization had been extended by a period of six months with effect 1st April, 2014 to 30th September, 2....