AI Drafter 
TaxTMI 
TaxTMI 
2022 (2) TMI 747
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....t the turnover of the petitioner both in respect to domestic and export is very substantial and for the said purpose, the petitioner has given a chart in Para 4 of the writ petition showing the domestic and export turnover of the petitioner for 2 years i.e. 2017-18 and 2018-19. The said chart is reproduced hereinbelow :- Financial Year Domestic Export (In Crore) 2017-18 44.75 79.64 2018-19 34.00 75.00 3. That it is further the case of the petitioner that on 17-6-2019, staff of Directorate of Revenue Intelligence (hereinafter referred to as "DRI") searched the factory premises of the petitioner and during the course of search seized physical and electronic records lying in the factory premises and also recorded statement of the partners of the petitioner. It is further averred that the DRI summoned various input suppliers of the petitioner and the petitioner, to show its bona fide as per the direction of DRI, deposited a sum of Rs. 50 lakhs towards any future liability. It is averred that the DRI directed different authorities including DGFT to withhold export incentives and the DGFT without applying its independent mind withheld export incentives ....
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....ng respondents that DRI has no objection if the export scrips, if any to the petitioner. Copy of letter dated 22-10-2020 is Annexure R-1/1. (4) That in pursuance to the letter dated 22-10-2020 the name of the petitioner was withdrawn from Denied Entity List (DEL) vide Letter No. 462131, dated 27-10-2020 and regarding the same the petitioner was duly informed through email dated 27-10-2020. Copy of letter dated 27-10-2020 and email dated 27-10-2020 is Annexure R-1/2. (5) That thereafter the scrips have already been issued to the petitioner on 28-10-2020. (6) That in view of the submissions made above the applications for the petitioner for MEIS, ROSL and ROSCTL have been accepted and the benefits stands transferred and therefore the prayer made by the petitioner in the writ petition has already been rendered infructuous. Place : Ludhiana Sd/- Dated: 11-11-2020 Deponent" 5. A perusal of the same would show that the name of the petitioner was withdrawn from the Denied Entity List (DEL) vide letter dated 27-10-2020 and the duty credit scrips had....
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.... At this stage, Mr. Tajender Joshi, Advocate, accepts notice on behalf of the respondents and seeks time to get instructions. Copy of this petition be supplied to Learned Counsel for the respondents during the course of the day. Adjourned to 16-3-2021." 9. Thereafter on 14-7-2021, DRI was impleaded as respondent No. 2. The respondent No. 2 has filed its written statement and has opposed the prayer made in the writ petition. It is the plea of the DRI in the written statement that the petitioner has committed a fraud and the investigation regarding the same is underway. It has been stated that the petitioner was indulging in overvaluation in their exports to avail undue export benefits and were also showing excessive purchase of raw material in order to misuse the facility of IGST refund. It is however, admitted that the petitioner had deposited Rs. 50 lakhs towards any duty liability that may arise during the course of investigation, but the case of the DRI was that it has been deposited voluntarily. It is stated that DRI was carrying out an extensive investigation and had requested various overseas offices for causing overseas enquiry. It has been stated that the DRI had r....
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.... have registered the same. Reliance in this regard has been placed upon the judgment of the Hon'ble Supreme Court of India titled as Titan Medical Systems Pvt. Ltd. v. Collector of Customs, (2003) 9 SCC 133 = 2003 (151) E.L.T. 254 (S.C.). It has further been argued that the investigation has been pending since 2019 and no statement has been made as to when the same is going to end and thus, the non-registration of the duty credit scrips would cause great financial loss to the petitioner. 11. On the other hand, Learned Counsel for the respondents has also vehemently argued that the present case is a case in which the respondents has indulged in overvaluation in their exports and has shown excessive purchase to misuse the facility of IGST refund. It has further been argued that the petitioner in fact is not even co-operating with the investigation. Learned Counsel for the respondents has tried to explain the resumption of the investigation by relying upon the stay order passed by Hon'ble Supreme Court of India which had been granted against the judgments passed by this court on account of which the investigation had been suspended. In the alternate, by placing reliance upon t....
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....or any proceeding under the Act is pending against the petitioner. The investigation by the DRI although is pending and continuing but there is no indication when the same would finally culminate. Moreover, the respondents-authorities have sufficient power to proceed against the petitioner, if any amount is found due against them, even after the registration of the duty credit scrips. The turnover of the petitioner is substantial as is apparent from the chart reproduced hereinabove and the chart has not been denied by the respondent-authorities. The Petitioner cannot be made to wait endlessly for deriving benefit of the scrips issued to him. Thus, keeping in view the abovesaid facts, we are inclined to accept the prayer of the petitioner subject to conditions. This court had put to the Learned Counsel for the petitioner as to how much amount the petitioner is ready to deposit in addition to the amount of Rs. 50 lakhs already deposited, in order to protect the interest of the revenue. Learned Counsel for the petitioner has very fairly stated that the petitioner is ready to deposit an amount of Rs. 1 crore within a period of 30 days from today. The duty credit scrips issued in the pr....