TaxTMI 
TaxTMI 
2019 (10) TMI 1057
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....s formulated to regulate foreign trade during the span of said five years. Chapter 4 of FTP 2009-14 published by the Government of India, in exercise of powers conferred by Section 5 of FTDR Act, provides for duty exemption/remission schemes. While Advance Authorization Scheme (AA Scheme) is an Actual User duty free exemption scheme, the Duty Free Import Authorization (DFIA Scheme) permits transferability of authorization and inputs, post endorsement of transferability after discharge of stipulated export obligation in the authorization issued under the provisions of FTP and Hand Book of Procedures. 4. A new Foreign Trade Policy 2015-20 was announced on 01.04.2015 incorporating various changes under DFIA Scheme. The FTP for the year 2015-20 provides a frame work and mechanism for increasing export of Indian goods. In order to increase the foreign trade, certain concessions have been accorded to Indian traders. 5. FTP 2015-20 floated a Duty Free Import Authorization Scheme (DFIA) to regulate export viz-a-viz import of the goods. It is a post export scheme which gave exemption from basic custom duty while importing specified inputs. The design of the scheme is like, the merchan....
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.... is subjected to pre-import condition or where SION prescribes "Actual User" condition or Appendix-4J prescribes pre import condition for such an input. 7. The writ petitioner is an Advocate by profession, claims to have filed the instant petition in public interest and to prevent huge unwarranted loss of public money. According to him the respondents have failed to discharge their obligations and inaction of the respondents is resulting in loss of public revenue in the form of duty exemption being availed by unscrupulous exporters and importers, wherein the likelihood of connivance of exporters and importers with the officials of the respondents cannot be ruled out. On this premise he has prayed as follows: a) to forthwith prohibit the duty free import of goods mentioned under the Transferable Authorizations issued by the office of respondent no. 2 under the "Duty Free Import Authorization Scheme ('DFIA Scheme'- notified in Chapter 4 of the respective Foreign Trade Policies for 2009-14 and thereafter for 2015-20), unless the technical specification/quality and characteristics of the imported goods are specifically declared in the shipping bills by the exporter,....
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.... or any other action may be initiated against the erring officials for not strictly complying with these requirements. According to him, once a policy decision is taken, the issue of practically impossible conditions or onerous conditions pale into insignificance. The petitioner has annexed with the petition judgments relating to Transferable Licences in Goodluck Industries Vs. Commissioner, of the Hon'ble Supreme Court, reported in 2000 (120) E.L.T.a. 66 (SC), S.B. International Ltd. Vs. Asstt. DGFT, reported in 1996 (82) E.L.T. 164 (SC), Collector Vs. MRF Ltd., reported in 2000 (110) E.L.T.A. 163 (SC), Commissioner Vs. Jayant R. Patel, reported in 2003 (155) E.L.T.A. 68 (SC), Commissioner Vs. Godavari Drugs, reported in 2011 (274) E.L.T. 508 (Madrass HC) and Commissioner of Customs, Calcutta Vs. G.C. Jain, reported in 2011 (269) E.L.T.A. 307 (SC). He submits that the importers to avail unintended benefits under DFIA and the respondents to justify their inaction cannot be permitted to take shelter of these judgments because none of these judgments are applicable in the current scenario in respect of the DFIA Scheme, as it exist now. 11. Sri S.B. Pandey, learned ASG for t....
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....uses. We can only understand these clauses, i.e. para-4 of the impugned Notification dated 01/08/2013, and para-2 of the impugned Public Notice dated 30/10/2013, as stipulating that, from the product which already stands exported, the inputs used in the manufacture of thereof should somehow be extracted, and only such inputs be allowed to be subsequently imported into India. To say the least, such requirement is manifestly absurd, and it's very incorporation, in the impugned Notification and Public Notice, reflective, as the learned Senior Counsel has correctly emphasized, of total non-application of mind, on the part of the authorities issuing the said Notification/Public Notice. 29. Indeed, on the face of it, it appears that these covenants, by their very nature were never intended to cover the cases of post-export DFIA or transferees of such DFIAs. Else, the DFIAs would be rendered worthless for all such holders/transferees of the DFIAs. This, in our view, could never have been the intention of a beneficial schemes such as the DFIA Scheme. It is trite that beneficial schemes had to be so interpreted as to extend the availability of the benefit thereof, rath....