TaxTMI 
TaxTMI 
2019 (11) TMI 608
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....from 1988 to 1993. The respondent applied for the grant of an REP licence in the f.o.b. value of Rs. 6,16,116 for which it was entitled to a premium of 20 per cent on the amount of exports under the scheme. Since the scheme for the issuance of REP licence was discontinued, the premium of Rs. 1,23,223 was not paid. The respondent received an intimation that the Additional Chief Controller of Imports and Exports had passed an order on 3 September 1991 holding in abeyance the grant of premium from February 1988 to August 1992 which was further extended to 31 March 1993. The respondent filed an appeal before the Appellate Committee of the Ministry of Commerce. The respondent made unsuccessful attempts for the release of the premium and was informed that the scheme had been closed as a result of which the claim could not be entertained. 5. This led to the institution of proceedings before the District Consumer Disputes Redressal Forum at Delhi. The District Forum allowed the claim by directing that an amount of Rs. 1,23,223 be paid over to the respondent together with compensation for mental agony and towards legal expenses. 6. The appellants were set down ex parte befor....
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.... which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such services other than the person who 'hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person but does not include a person who avails of such services for any commercial purposes; Explanation. - For the purposes of this clause, "commercial purpose" does not include use by a person of g....
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....on is not a consumer. 14. Section 2(g) which defines the expression "deficiency", adverts to a fault, imperfection, shortcoming or inadequacy in the quality, nature or manner of performance which is required to be maintained by or under any law or which is contractually assumed to be performed by a person in pursuance of a contract or otherwise in relation to any service. 15. Section 2(o) has defined the expression "service" to mean a service of any description. The issue essentially is whether in formulating the Exim policy and in providing a regulatory regime, the Government performs a service of any description. 16. Since in the present case the relevant Exim policy is for the period from April 1988 to March 1991, it would be instructive to extract the purpose and object of the policy as contained in the foreword to the document; "The Import and Export Policy plays a crucial role in the economy as a whole and in particular the industrial and export sectors. The main objectives of the new Policy are - (i) to stimulate industrial growth by providing easy access to essential imported capital goods, raw material....
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....ieve the purpose of the policy. The grant of these incentives does not constitute the State as a service provider. 19. Before a three judge Bench of this Court in Vikas Sales Corporation (supra), the issue for consideration was whether the transfer of an REP licence or Exim scrip to another constitutes a sale of goods within the meaning of State Sales Tax Legislation. Explaining the objectives of the import policy, the Court held : "4. ...... The objective behind the licences was to provide to the registered exporters the facility of importing the essential inputs required for the manufacture of the products exported. The essential idea was to encourage exports and for that purpose import licences called REP Licences were issued equal to the prescribed percentage of the value of exports. These licences were made freely transferable. It was provided that the transfer such licences did not require any endorsement or permission from the licencing authority. It was clarified that such would be: "governed by the ordinary law". It only required a letter from the transferor recording and evidencing the transfer. On that basis, the transferee; became the due and lawfu....