TaxTMI 
TaxTMI 
2024 (8) TMI 729
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....ated 02.02.2024, issued by Shri Ranjeet Kumar Roy, 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 Po....
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.... Bill No. 7552481 could be sent back to the same person from whom the goods were imported in the country and items in Shipping 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 w....
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....and procedural formalities provided under the FTP. He states that all these have been directly sold to Civil and Commercial Airlines which are publicly registered and he adds emphasis 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 ....
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....ventions. The SCOMET List has been notified under Appendix 3 to Schedule 2 of ITC (HS) Classification of Export and Import items, which is available on the whole DGFT. xxx 10.05 Additional control on Non-SCOMET Items for dual use (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. 755248....
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....ofan engine commonly used for civil application. Applicable Sl. Nos in 5C0MET list a) SA0l0d :- Item does not fall under . this category b) 8A901a:- Item does not fall under this category vi. New Aircraft Tyres27x7.75-15/ AIR/12/225 029-616 (For third country export) These items (Qty 15) are aircraft 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 AE....
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....unch vehicles, "spacecraft", "spacecraft buses", "spacecraft payloads", "spacecraft" on-board systems or equipment, terrestrial equipment, and air-launch platforms, as under:- a. Space launch vehicles; b. "Spacecraft"; c. "Spacecraft buses"; d. "Spacecraft payloads" incorporating items specified by 8A301.b.1.a.4., 8A302.g., 8A501.a.1., 8A501.b.3., 8A502.c., 8A502.e., 8A602.a.1., 8A602.a.2., 8A602.2.b., 8A602.2.d., 8A603.b., 8A604.4.c., 8A604.e., 8A608.d., 8A608.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 dat....