TaxTMI 
TaxTMI 
2022 (7) TMI 107
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.... of the Constitution of India challenging the legality and validity of order dated 18th May 2011 passed by respondent no.2. 2. The facts in brief are as under: Petitioner was engaged in the manufacture of Twine/Ropes made of High Density Polyethylene (HDPE). Petitioner obtained four advance licenses in terms of Export Import Policy 2002-2007. In terms of these licenses, petitioner was permitted to import HDPE granules without payment of import duty. Petitioner was under obligation to export Twine /Ropes. Petitioner did not import the raw materials, i.e., HDPE against any of the aforesaid licences. Instead, petitioner got the licences invalidated and procured the HDPE from indigenous suppliers. Copies of corresponding invalidation letters....
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....y utilizing the duty paid raw materials procured from Reliance Industries Ltd and exported the resultant products out of India. In all the export documents, however, i.e., ARE-1 and shipping bills, petitioner erroneously indicated the numbers of advance licences and also indicated that shipping bills were filed under DEEC cum-Drawback shipping bills. This is an indication that the exports were made against the advance licences which was a factual error. Mr. Sridharan submitted that the fact that it is a factual error also cannot be disputed because there were no advance licences in force, the same having been invalidated. Mr. Sridharan says that due to oversight of petitioner the error was not detected earlier and, therefore, no steps were ....
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.... of Drawback, wherein it is stipulated that All Industry Drawback is not available to export made in discharge of export obligation under advance licences and hence the drawback amount was paid erroneously to petitioner. The show cause notice proposed to recover drawback amount sanctioned to petitioner. Mr. Sridharan submitted that the General Notes speaks for itself but the fact in the case at hand is that export was not made in discharge of export obligation under advance licences because the advance licences for direct import had been made invalidated admittedly and petitioner was allowed to procure and admittedly procured the HDPE granules from Reliance Industries Ltd and used those granules in manufacturing of ropes which were exported....
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....from Reliance Industries Ltd by paying excise duty also is not disputed. The fact that the shipping bills referred to advance licences and that was an error, is also not disputed. In fact in the affidavit in reply of one KGVN. Suryateja affirmed on 20th December 2011, it is mentioned "it was also observed that in the present advance licences, against which the goods were exported, were issued under Notification No. 43/02/Cus dated 19th April 2002 which exempted all duties of Customs on import of inputs used for the manufacture of export product. The exempted material in the present case for the export product is HDPE granules. As per the licence conditions direct import of inputs was not permitted and petitioner procured the inputs indigeno....