AI Drafter 
TaxTMI 
TaxTMI 
2021 (7) TMI 1034
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....icer Free Trade Zone, Mannur Village, Sriperumbudur (JM FTZ SEZ/Mannur) Kancheepuram - 602105/R2. 3. Since the scrips in question were issued by the Additional Director General of Foreign Trade, Mumbai, the aforesaid authority has been impleaded as R3 by order of this Court dated 01.10.2019. 4. The brief facts that are germane to the disposal of the issues arising from these Writ Petitions are as follows: i) The petitioner is an exporter of menthol and natural essential oils. ii) The instant transactions form part of the supply of the commodities to various purchasers, who in turn supply the same to Colgate Palmolive. iii) The petitioner admittedly claims benefits under the Customs Act, 1962 and allied policies, such as duty drawback as well as benefits under the Goods and Services Tax Act, 2017 (in short 'GST Act'), such as input tax and other available benefits. iv) The petitioner, wishing to avail the benefit under the Merchandise Exports from India Scheme (MEIS) which was part of the Foreign Trade Policy, effective 01.04.2015, made an application to R3 and was issued scrips 1, 2 and 3 by R3. These scrips were current for the per....
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....ollows: i) All three scrips have been validly issued after due application of mind and enquiry by R3. Thus the rejection of the application for registration by R2 is not just contrary to law but amounts to review of the original order passed, for which there is no provision under either the policy or any regulation. ii) The scrips have not been cancelled at any time till their expiry or even thereafter and hence in the absence of cancellation, for which a specific procedure is statutorily provided, R2 has no authority to have rejected registration and TRA. iii) Reference is made to Section 9(4) of Foreign Trade (Development and Regulation) Act, 1992 (in short 'FTDR Act'), which provides for a procedure for cancellation of scrip. Admittedly, this procedure has not been invoked and hence the scrips, being valid, ought to have been registered as requested by the scrip holder. iv) In response to the argument put forth by R2 to the effect that the original document (two scrips) have been taken back by the petitioner, the petitioner would state that it is only for the purpose of ensuring their safety. In any event it is not the case of the reve....
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....not fall within the prohibited categories, as enumerated in clause 3.6 of the scheme. 6. As answering the question of entitlement of the petitioner to the benefit of the scheme requires some factual particulars, the petitioner was asked to produce purchase orders/commercial invoices containing the terms and conditions between the petitioner and the buyer, UTEXAM. These documents have been filed as part of document compilation dated 22.06.2021, also supplied to the respondents. No objection has been raised by learned counsel for the respondents for admission of the same and for being considered in the resolution of the issues arising in this matter. 7. The following documents have been filed. Jindal Drugs Pvt. Ltd 229 Nariman Point, Mumbai 400 021 Kind Attention: Mr.Ajay Jindal Business Award -Cornmint Oil Redistilled M07595 & Cornmint Oil Tri-rectified M08377 1. Specifications: Colgate Subsidiary CP Global (Excluding India) CP Global (Excluding India) Delivery at FIZW at Mannur/Vallarpuram Village, &nbs....
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....Nos. 84/85 dated 27.02.2019 and 93/94 dated 10.04.2018, Tax invoices dated 03.04.2018, 06.04.2018, 08.05.2019 and 01.06.2019 (filed as sample invoices) reveal that Jindal Drugs Private Limited, the petitioner herein, the exporter. The manufacturing location has its facility at Taloja, Maharashtra, the invoice has been drawn on UTEXAM at Ireland and supply of the consignment is to DHL Logistics, which is a Free Trade Warehousing Zone (FTWZ). 10. Statements of Bank Realisation Certificate (BRC) dated 29.06.2018 od Citi Bank NA, Mumbai ICG Branch have also been placed on record evidencing receipt of consideration in US dollars in relation to the exports made. The application filed under MEIS Scheme contains, among various other particulars, the shipping bill details as follows: DIRECTORATE GENERAL OF FOREIGN TRADE 44 Merchandise Exports From India Scheme - E-COMMERCE VERSION ANF 3A Similar details in regard to shipping bills accompany the other two applications as well. 11. Upon a comparison of the above details contained in the bills of export of goods under which the petitioner has claimed duty drawback, with the bills of the parties to the transaction, I find that th....
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....ally acknowledged bills files and scrip shall be issued after due scrutiny of electronic documents. After scrutiny, if the officer has reasonable suspicion of wrong classification/mis-declaration in any application, in such cases officer may, after approval of this senior officer/Head of the Office, seek physical documents for scrutiny. On receipt of such documents, the officer must decide the claim within 7 working days. In cases, where the claim is rejected, a speaking order shall be issued. 14. The procedure set out for issuance of scrips is deemed to have been scrupulously adhered to by R3 and this is clear from a reading of clause (h) above. The presumption in Clause (h) is that the scrips should be issued only after due scrutiny and, upon the slightest suspicion that the claim may be unacceptable, the Officer has to call for physical documents and decide the fate of the claim by way of a speaking order, if rejected. The issuance of the scrip thus pre-supposes due application of mind by R3 to all relevant stipulations. Clause 3.06 which sets out ineligible categories must thus be assumed, not just to have caught the attention of R3 but to have been thoroughly examined, prio....
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....etitioner. 19. Supplies made by a DTA unit to a SEZ unit would be paid for by the SEZ unit. In this case, admittedly, the consideration received is from Ireland, in US dollars. The BRC dated 29.06.2018 evidences this position. 20. Moreover, in this case, supply has been made by the petitioner to FTWZ for onward shipment at the behest of the purchaser, UTEXAM, to a location of its choice. This modus operandi is supported by the documentation placed on record by the petitioner. 21. Thus, DHL logistics, the FTWZ, merely offers a facility to the petitioner to warehouse its consignments that are to be exported. The destination is decided by UTEXAM, which is the ultimate purchaser, which has paid the petitioner in USD for the consignment. The stipulation in Clause (vii) deals with exports made by a unit in the FTWZ. DHL, the FTWZ does not export the consignments but only facilitates such exports. The exports are thus, by the petitioner through DHL to a destination abroad. 22. To a query as to why the transaction was so structured, the petitioner explains stating that the consignments in question were, purchases by UTEXAM on behalf of Colgate Palmolive for supply at any number....