AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 729
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....y, Deputy Director, Directorate General Foreign Trade Export Cell (SCOMET), New Delhi; (b) Pass such further order / directions as the Hon'ble Court may deem fit in the facts and circumstances of the case." 2. The Petitioner company is engaged in the business of import and export of Civil/Commercial Aircraft Parts and has since been engaged in the said business, they received the Import code on, 21.11.2022. The Petitioner company entered into a Letter of Intent, dated 03.11.2023, with Siberian Airlines for export of Aircraft Engines. Subsequently, the Petitioner imported the said aircraft engines from the U.A.E. and started the process for exporting the engines to Siberian Airlines, under Airway Bill No. 7552481 on 15.02.2024. While the aforementioned consignment, Airway Bill No. 7552481, was under process and the Petitioner was waiting for the Let Export Order (LEO), the Petitioner Company received a letter/order F.No. 01/77/171/D86/AMQ24/EC(S) on 02.02.2024 from the Director, DGFT Export Cell (SCOMET), informing the Petitioner Company that they had invoked the Catch-all provisions under Para 10.05 of the Foreign Trade Policy (FTP), 2023, against the export consignment and furt....
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....g Bill Nos. 7567132, 7596729, 7567057 could be permitted for re-export. The Joint Directed General of Foreign Trade was present in Court and the Petitioner was directed to meet the said Officer to resolve the issue and the matter was adjourned to 05.06.2024. On 05.06.2024, Mr. Handoo, learned Counsel for the Petitioner, informed this Court that the permission sought for by the Petitioner for the goods covered under Shipping Bill No. 7552481 has been granted to the Petitioner to be sent back to the same person from whom it was imported and as far as the question of re-export of the goods covered under Shipping Bill Nos. 7567132, 7596729, 7567057 is concerned, the matter has been sent to the Inter-Ministerial Working Group (IMWG) for a decision to be taken. Mr. Handoo submitted that this exercise was unnecessary in view of the inspection report. Since the matter was not resolved, this Court decided to hear the arguments and the Judgment was reserved on 02.07.2024. 6. The description of goods in various shipping bills given in the Panchnama dated 28.03.2024 which was prepared when the goods were seized reads as under: S.No. SB No. SB Date Item Description declared before Customs ....
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....phasis on the fact that they have also provided end user certifications for the aircraft parts that they are exporting to lend clarity as to the usage of the aircraft parts. 9. Per contra, the learned Counsel for the Respondent states that aircraft engines and certain other aircraft parts are components that can have the potential of both civil as we well as military use, and hence may be controlled under the SCOMET list. This potential for dual use is the reason why an extra license for its export is required. He further adds that as per Para 10.05 of the FTP if the exporter has been notified in writing by the DGFT or has reason to believe that an item may not be covered under the SCOMET list but has potential of use as a Weapon of Mass Destruction or can be diverged to production of Weapons of Mass Destruction, or in missile system or military use, the exporter has to apply for SCOMET Authorization. He further adds that the product that is being imported in this case has the potential of being used for military purposes and hence it is essential that the Petitioner company should apply for the SCOMET Authorization before being allowed to export such products. 10. The learned Co....
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....(Catch-all Controls) Export of items not in the SCOMET list may also be regulated under provisions of Weapons of Mass Destruction and their delivery System Prohibition of Unlawful Activities) Act, 2005. If the exporter has been notified in writing by DGFT or he knows or has reason to believe that an item not covered in the SCOMET list has a potential risk of use in or diversion to weapons of mass destruction (WMD) or in their missile system or military end (in their missile system or military end use (including by terrorists and non-state actors), the export of such on item may be denied or permitted subject to the grant of license, as per the procedure provided for SCOMET items in Para 10.05 and 10.06 of the HBP." 13. It is pertinent to mention that vide Order dated 01.05.2024, this Court had directed the DRDO to conduct an on-site physical inspection of the goods, contained in the four shipments under Airway Bill Nos. 7552481, 7567057, 7567132, 7596729, to determine the nature of products being exported. Particulars of the DRDO report are also attached below:- Sl.No. Item Description, as declared before Customs Finding Our Opinion i. Engine CFM34-8E5 Serial no: ESN193864....
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....raft tyres of Michelin make. Based on information available in open domain, the size and part number refer to application in Boeing 737 aircraft Applicable Sl. Nos In SCOMET list a) SA010a:- Item does not fall under this category since it is found to be for civil application. However, a certificate/proof may be obtained from exporter to ascertain civil use. vii. Retreaded aircraft tyres H44.5X16.5-21 AIR/28/225 029 P/N: 029-894-O (For third country export) These items (Qty 9) are aircraft lyres of Michelin make. Based on information available in open domain, the size and part number refer to application In Boeing 737 aircraft Applicable Sl. Nos in SCOMET list a) SA010a:- Item does not fall under this category since it Is found to be for civil application. However, a certificate/proof may be obtained from exporter to ascertain civil use. 8A9 AEROSPACE AND PROPULSION (SYSTEMS, EQUIPMENT AND COMPONENTS) N.B. For propulsion systems designed or rated against neutron or transient ionizing radiation, see Category 6. 8A901 Aero gas turbine engines having any of the following: a. Incorporating any of the "technologies" specified by 8E903.a, 8E903.h or 8E903.i; or Note 1....
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....8.e., 8A608.k., 8A608.l. or 8A910.c.; e. On-board systems or equipment, specially designed for "spacecraft" and having any of the following functions: 1. 'Command and telemetry data handling'; Note For the purpose of 8A904.e.1., 'command and telemetry data handling' includes bus data management, storage, and processing. 14. It is also pertinent to mention that the type rated certificates for the engines, as certified by the DGCA, have been submitted by the Respondent are being exported below:- 6. General Electric Company engine model CF-34-8E5 AED, HQ-2022-0959 16.12.2022 FAA TCDS No. FAA TCDS E00063EN Rev 8 and Revision/issued dated 22.11.2016 7. GE90-115B IN23ETA018 11.04.2023 FAA TCDS No. E00049EN Revision 20 dated 12.01.2016 8. GE90-110B1 IN23ETA029 21.04.2023 FAA TCDS No. E00049EN Revision 20 dated 12.01.2016 9. GE Passport 20-19BB1A IN23ETA031 28.04.2023 FAA TCDS No. E00091EN Rev. 3 dated 10.03.2023 GE Honda Aero Engines, LLC 1. GE Honda Aero engine model HF-120 07-21/2018-AED 10.09.2018 FAA TCDS E00085EN, Rev. 1 dated 13.12.2013 Honeywell International Inc 1.1. Honeywell engine model AS 907-3-1E 7-12/2015-AED 07....