2025 (7) TMI 736

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....a loss of revenue to the Government till date AND Further move the Hon'ble Court should also direct the Respondents to point out the steps taken by the Respondents to plug the loopholes in import and export policies to stop further scams; (b) for a writ or an order in nature of writ appointing an independent committee chaired by retired judge of this Hon'ble Court or the Hon'ble Supreme Court to investigate the factual aspects of the scams pointed out in the present petition The Committee may also be directed to suggest safeguards to plug the loopholes in the import and export policies to stop future scams within a limited time frame; (c) for a writ or an order in nature of writ directing the Government to formulate a poli....

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....ctive firms. The Affidavit in reply sets out detailed action taken against the concerned firms in respect of the alleged Drawback fraud. Additionally, the Affidavit-in-reply sets out detailed steps take by the Customs Department for preventing such frauds in future. In our view, the purpose behind filing the present petition is served on account of various safeguards implemented by the Government of India during implementation of the DEEC Scheme, as well as EPCG Scheme. In this regard, we reproduce the steps taken by the Government of India for plugging the loopholes in the system as pleaded in para-4(g) of the Affidavit-in-reply:- (g) The Government has taken various safeguarding measures to prevent misuse of various export promotion sch....

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....e licence holder for any misrepresentation, misdeclaration and default detected subsequently. c) Safeguards under DEPB scheme: Value caps have been imposed on certain sensitive export products to curb the tendency of unscrupulous exporters to avail of unintended benefits by over-invoicing of exports. In respect of products where the credit entitlement is 10% or more, the amount of credit is restricted to 50% of the Present Market Value (PMV) of the export product. Verification of DEPB scrips is done to thwart any attempts of forgery. Efforts are in progress to establish an on-line verification of licences by linking Customs and DGFT servers. d) Safeguards under Export Promotion Capital goods Scheme (EPCG): In order to ensure fulfillme....