Page 91 - ELT_1st June 2020_VOL 372_Part 5th

Law

2020 (372) E.L.T. 625 (Del.)

IN THE HIGH COURT OF DELHI
D.N. Patel, CJ and C. Hari Shankar, J.
UNION OF INDIA
Versus
E.I. DUPOINT INDIA
L.P.A. Nos. 770 of 2015 & 631 of 2019 and C.M. Appl. Nos. 25323-25324 of 2015 &
42999, 43002 of 2019, decided on 6-12-2019
FTP 2004-2009 - Served From India Scheme - Clause 3.6.4.2 - Scope of -
Its benefit cannot be restricted to entities that fulfil two conditions stipulated
therein - It is export promotions schemes intended to benefit exporters who
earn valuable foreign exchange - On facts, held that benefit of SFIS cannot be
denied to Indian subsidiary of foreign country having non-Indian brands
known globally - Policy Interpretation Committee decision to deny benefit of
SFIS found to dovetail para 3.6.4.1 of Foreign Trade Policy, 2004-2009 into para
3.6.4.2 thereof, which was untenable in law. - If the framers of the FTP intended to
subject the entitlement, or the eligibility, to benefits under the SFIS, by the objective
thereof, the framers ought to have expressly done so. This, having not been done by the
framers of the policy, cannot be done by its interpreter. The interpreter of the law cannot
be wiser than the framer thereof. A juxtaposed comparison of para 3.6.4.2 of the FTP
2004-2009, with para 3.12.2 of the FTP 2009-2014, underscores this legal position. The
framers of the policy had, while framing the FTP 2009-2014, consciously limited the ben-
efits, to the SFIS, available thereunder, to Indian service providers. The respondent, very
fairly, does not seek to avail the benefit of FTP 2009-2014. The claim of the appellant, if
accepted, would result to substituting para 3.6.4.2, in the FTP 2004-2009, with para
3.12.2 of the FTP 2009-2014. Needless to say, this can never be allowed. [paras 28, 30,
31, 32]
FTP - Policy Interpretation Committee - It can interpret policy - It can-
not reword policy, or import, into the policy, conditions and restrictions which
were not to be found therein. [para 30]
Interpretation of statutes - Beneficial fiscal statute - It is to be liberally
construed - Tax benefits, conditional to obligations to be fulfilled by benefi-
ciary, have to be construed to advance benefit, rather than deny same. [para 26]
Interpretation of statutes - Shall - It denotes mandate - It is not inevi-
tably regarded as mandatory and Court is guided by real intention of Legisla-
ture. [para 26]
Appeals dismissed
EXCISE LAW TIMES  1st June 2020  91