TaxTMI 
TaxTMI 
2022 (12) TMI 101
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....titions, same are taken up together for hearing and disposal. For the sake of convenience WPO No. 1286 of 2013 (LGW Ltd. -Vs- Union of India & Ors.) is taken up first. In this writ petition subject matter of challenge are letters (5 in number) dated March 28, 2013 rejecting the application(s) made by the petitioner for grant of transferability in respect of Duty Free Import Authorisations (DFIA) being no. 0210166782 dated September 28, 2011, 0210167411 dated October 13, 2011, 0210168040 dated October 24, 2011, 0210170321 dated December 7, 2011, 0210170341 dated December 8, 2011. Between 6th January, 20112 and 16th August, 2012 the petitioner applied to the DGFT for granting amendment and transferability of the said five Duty Free Import Authorisations (DFIA). Duty Free Import Authorisation Scheme is granted in terms of Foreign Trade Policy (FTP) 2009-2014 wherein DIFA is mentioned in Paragraphs 4.2.1 to 4.2.7 of the Foreign Trade Policy 2009-2014 which are referred and discussed hereunder: (a) The DFIA falls under chapter 4 of the FTP which relates to duty exemption and duty remission scheme and two such exemptions schemes are Advanced Authorisation Scheme and ....
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....P Vol-I states that in respect of "Pesticides" the export shall be required to give declaration with regard to technical characteristics, quality and specifications in the shipping bill. (c) Paragraph 4.36 of the HBP Vol-I relates to fulfilment of export obligation and maintenance of proper accounts. This states that provisions of Paragraph 4.25 shall apply [paragraph 4.25 states that authorisation holder shall furnish prescribed documents in ANF4F in support of fulfilment of EO]. Paragraph 4.36 states that the original DFIA holder shall maintain true and proper accounts of consumption and utilisation of Duty Free Imported/Domestically produced goods against each authorization as prescribed in Appendix 23. These records are required to be sent to the concerned RA along with request for bond waiver/redemption/discharge of export obligation/transferability. (d) Paragraph 4.36A of the HBP Vol-I states that once export obligation is fulfilled and required documents as stipulated in paragraph 4.36 have furnished, the RA shall make authorisation transferable subject to conditions stipulated for scheme including an endorsement on the authorisation itself. It appears f....
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....cided to inform the applicant therein that these generic items are pesticides required for cotton farming in India and were made to ease out the incorporated inputs in the export products which are to be imported to be specified since SION J-373 and item 5 was very general and referred to pesticide without giving any details thereof. The Norms Committee to ease out and help the exporters had decided that such products are pesticides that are used in India for cotton farming and any of them could have been used for manufacturing in the export product for consequential import. On 28th March, 2013, the Additional DGFT rejected the grant of transferability in respect of the five DFIAs of the petitioner. The impugned order of rejection of petitioners' application for grant of transferability was made on three counts in respect of DFIA No. 0210166782 dated 28.09.2011: (i) There was misdeclaration while submitting application prescribed in ANF4H and the DFIA was obtained on basis of such misdeclaration. The petitioner had prayed for importing pesticides/insecticides for CIF Value of Rs. 1807125000/- as against total CIF Value of Rs. 18,12,23,527.50/- against the FOB value o....
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....tal cost of raw cotton was at 8.47 for the year 2011-12 in the State of Punjab whereas other cotton farming States were below that level and the National average for the year 2010-11 is 3.424 for the year 2011-12 is 3.833 and for the year 2012-13 is 3.374. Respondents submit that it is therefore impossible that the petitioner will be allowed to import 82.14 % of Pesticides for an export of 100 % of raw cotton. Since only the pesticides that are physically incorporated in the export product can be imported, it is impossible that 82.14 % of Pesticides were used in the export product which are sought to be imported through such DFIA. This was the principle ground for the point 1 of rejection of transferability. Respondents submit that Point no. 2 and 3 of rejection relates to non-mentioning of supporting manufacturer and also not providing technical characteristics, quality and specification of pesticides/insecticides in the shipping bills. Respondents submit that with regard to transferability of the two DFIA Authorisations that were allowed by the respondents it has been clearly stated in the affidavit in reply that such transferability was granted on 19.10.2011 and on 2....