TaxTMI 
TaxTMI 
2008 (10) TMI 153
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....try of Commerce has formulated a Scheme called Vishesh Krishi and Gram Udyog Yojana Scheme (in short "VKGUY Scheme" under its Foreign Trade Policy for the period 2004-2009. The objective of the Scheme as per the Policy is to promote export of Fruits, Vegetables, Flowers, Minor Forest produce, Dairy, Poultry and their value added products, and Gram Udyog products by incentivising exporters of such products. In respect of these products, the exporter is entitled for a duty credit scrip equivalent to 5% of the FOB value of exports. It is their further case that the above duty credit scrip can be used for import of any inputs or goods which are otherwise, permitted to be imported without any restrictions under the above Foreign Trade Poli....
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....ent for issue of duty credit scrips in terms of VKGUY Scheme. Pursuant to that, the third respondent has issued Duty Credit Scrip bearing Nos. 0410080846 dated 28-4-2006 in W.P. No. 20955/2008, 0420081869 and 0410080868 dated 2-6-2006 in W.P. No. 20957 and 20958/2008. The above credit scrips have been utilised by the petitioner and sold to various purchasers, who in turn have used them for import of goods as permitted in the Foreign Trade Policy. While that being the position, the third respondent issued communications dated 25-7-2008 in W.P. 20955/2008 and a further communication dated 21-7-2008 in W.Ps. 20957 and 20958/2008 which are impugned in these petitions and contended that on the basis of the alleged audit scrutiny, export of....
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....eign Trade (Development & Regulation) Rules 1993 was not followed by the third respondent before issuing the impugned order. Therefore, it is clear that the impugned orders violate the mandatory provision. 5. The main contention of the learned Central Government Standing Counsel for the respondents is that Chapter 20 covers only value added products and the product under question will not qualify for the benefit under the VKGUY Scheme. Chapter 20 include nuts, fruits, etc., which are otherwise processed under Heading 20.08. In the present case, the ground-nut kernels have been removed from their shells, segregated by using equipment on the basis of their size. It is not a case of export of raw ground-nuts in shell form and its export in th....
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....d 28-4-2006 in W.P. 20955/2008; No. 0410081869 and 0410081868 dated 2-6-2006 in W.P. 20957 and 20958/2008. The petitioner has sold the credit scrips to various purchasers, who in turn have used them for import of goods as permitted in the Foreign Trade Policy and the impugned communications have been issued based on the audit scrutiny. It is also seen that the respondents have proceeded in issuing the communication without following the provisions under Sub-Section 4 of Section 9 of the Foreign Trade (Development & Regulation) Act 1992, which specifically provides that such suspension or cancellation can be made only after giving the holder of the licence a reasonable opportunity of being heard. Further, Rule 10 the Foreign Trade Rules, has....