TaxTMI 
TaxTMI 
TaxTMI 
2020 (2) TMI 1376
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....rt of foundry products including High Chromium Grinding Media Balls (hereinafter referred to as HCGMB). In terms of the Foreign Trade Policy for the period 2004-2009, said HCGMB falls under the Engineering Product Group and is listed at Sl. No. 671 of the Standard Input Output Norms (hereinafter referred to as SION). The petitioner challenging the arbitrary and illegal action of respondent No. 3 ordering cancellation of the petitioner's licence and ordering cancellation of the petitioner's advance licence and ordering suspension of the IEC of the petitioner till the amount of customs duty plus interest claimed to be due is paid by the petitioner and holding that no further licence will be issued to the petitioner under any duty exemption sc....
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....nt of export product. This neutralization is by way of granting certain percentage of Free On Board (FOB for short) value of the exports as duty credit and the percentage is based on fixed SION the norms for manufacturing of HCGMB is : High Chromium Grinding Media Balls for Cement Grinding Bills (Composition Cr.16-17%, Mo-0.6.-0.7%, Si-0.6-0.7%, C-1.5-2.5%, Fe Balance 1. Mild Steel Scap 0.90 MT 2. H.C. Ferro Chrome 292 Kg 3. Ferro Molly (mo-75%) 10 Kg 4. Ferro Silicon (Silicon 75%) 10 Kg It may be noted that fuel is not appearing in the norms list, listed above. 5. From para 4.1.3 of the Foreign Trade Policy provides "an advance licence is issued to allow duty free import of inputs which are physicall....
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....gainst them to cancel the licence ab initio and to suspend the Import Export Code (IEC for short) apart from refusing further licence to them in terms of para 4.24.1 of Hand Book Procedures 2004-2009. 9. The petitioner vide reply dated 7-9-2006 to the show cause notice, filed a detailed reply to the show cause notice. That on 27-11-2006, the Foreign Trade Development Officer called the petitioner to clarify the words "though other export" and informed the petitioner that policy to fulfil the export obligation in time would attract the penal provisions under the Foreign Trade (Development and Regulation) Act, 1992. The petitioner addressed a letter to the respondent No. 3 on 1-12-2006 stating that it had fulfilled its export obligation....
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....l the advance licence, suspend the IEC till the entire amount of customs duties plus 15% interest from the date of export and an amount equivalent to 3% of CIF value of imported material was paid and further ordered that no further licences would be issued to the petitioner under any Duty Exemption Schemes in terms of para 4.24.1 of the Hand Book of Procedures 2004-2009 until the above dues are recovered from the petitioner. The petitioner aggrieved by the order dated 11-7-2007, filed an appeal before the appellate authority. The appellate authority rejected the appeal filed by the petitioner. The petitioner aggrieved by the order passed by the appellate authority filed the writ petition. 10. Learned Single Judge after considering the....
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....wed by ALC subject to the following : (a) The facility of import of fuel shall be allowed only to the manufacturer having captive power plant. (b) Fuel should be allowed either under specific SION or as per the general fuel policy for productions for which SION exists or as per general fuel policy under paragraph 4.7 or under ad hoc norms. (c) Fuel should be allowed only against an actual user licence and therefore, fuel shall not be allowed for imports against DFRC, which is transferable in nature. (d) Even where fuel is included as an input under SION, it shall not be taken into account while fixing the DEPB rate for such products again....
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....es on the cost of Rs. 2.10 crores which he has incurred for importing fuel, there is no obligation on the petitioner to pay any duty on the said fuel. The petitioner would be entitled to payment of duties under DEPB scheme which he has paid on the raw material used in the manufacture of final product. When admittedly, the petitioner has not imported any raw material other than the fuel under the Advance Licence Scheme, which is excluded as per the amended provision, the net result is the petitioner has not availed any benefit under the Advance Licence Scheme. To avail the benefit of both Advance Licence Scheme and DEPB scheme, the petitioner has to perform the export obligation of Rs. 30 crores which he has fulfilled. The petitioner has pur....