TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 704
X X X X Extracts X X X X
X X X X Extracts X X X X
....s to promote export of fruits, vegetables, flowers, minor forest produce, dairy, poultry and their value added products. In the Scheme notified for the year 2005-06, the following exports were not to be taken into account for duty credit entitlement under the Scheme: "3.8 VISHESH KRISHI UPAJ YOJANA (SPECIAL AGRICULTURAL PRODUCE SCHEME) xx xx xx 3.8.2.2. Following exports shall not be taken into account for duty credit entitlement under the scheme: (a) Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through trans-shipment. (b) Deemed exports (even when payments are received in Free Foreign Exchange and payment is made from EEFC account)." 3. However, in the Scheme notified for the year 2006-2007 on 7th April 2006, clauses 3.8 and 3.8.2.2 were changed. The clauses read as under: "3.8 VISHESH KRISHI AND GRAM UDYOG YOJANA (SPECIAL AGRICULTURE AND VILLAGE INDUSTRY SCHEME) xx xx xx 3.8.2.2. Following exports shall not be taken into account for duty credit entitlement under the scheme: (a) Export of imported goods covered under Para 2.35 of the Foreign Trade Policy or exports made through transshipment. (b) Deemed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al Government may, by Order published in the Official Gazette, make provision for the development and regulation of foreign trade by facilitating imports and increasing exports. (2) The Central Government may also, by Order published in the Official Gazette, make provision for prohibiting, restricting or other wise regulating, in all cases or in specified classes of cases and subject to such exceptions, if any, as may be made by or under the Order, the import or export of goods or services or technology: Provided that the provisions of this sub-section shall be applicable, in case of import or export of services or technology, only when the service or technology provider is availing benefits under the foreign trade policy or is dealing with specified services or specified technologies. (3) All goods to which any Order under sub-section (2) applies shall be deemed to be goods the import or export of which has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962) and all the provisions of that Act shall have effect accordingly. (4) Without prejudice to anything contained in any other law, rule, regulation, notification or order, no permit or licence shall....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lege or not. It is also trite law that such exemptions, concessions or incentives can be withdrawn any time. All these are matters which are in the domain of policy decisions of the Government. When there is withdrawal of such incentive and it is also shown that the same was done in public interest, the Court would not tinker with these policy decisions. This is so laid down in a catena of judgments of this Court and is now treated as established and well-grounded principle of law. In such circumstances, even the doctrine of promissory estoppel cannot be ignored. xx xx xx 109. Therefore, it cannot be denied that the Government has a right to amend, modify or even rescind a particular scheme. It is well settled that in complex economic matters every decision is necessarily empiric and it is based on experimentation or what one may call trial and error method and therefore, its validity cannot be tested on any rigid prior considerations or on the application of any straitjacket formula. In Balco Employees' Union v. Union of India [Balco Employees' Union v. Union of India, (2002) 2 SCC 333] , the Supreme Court held that laws, including executive action relating to econom....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nuary, 2009 cannot be said to be illegal in any manner. 13. We do not find any merit in the argument that exports made through an Export Oriented Unit would be entitled to incentives. The purpose of the Scheme is that 100% Export Oriented Units or units situated in Special Economic Zone are not to be granted incentives. The purpose and object of the Scheme notified cannot be defeated by granting incentives to units which exports though 100% Export Oriented Units. 14. We do not find any merit in the argument that exports made through an Export Oriented Unit would be entitled to incentives. The purpose of the Scheme is that 100% Export Oriented Units or units situated in Special Economic Zone are not to be granted incentives. The purpose and object of the Scheme notified cannot be defeated by granting incentives to units which exports through 100% Export Oriented Units. 15. We do not find any merit in the argument that the Scheme excludes the benefit of exports by units in DTA in a Scheme pertaining to FMS notified along with Yojna in April 2006 for the reason that FMS has an explicit clause whereas the DTA was not excluded from claiming exemption under clause 3.8.2.2 related to Y....