Page 193 - ELT_15th July 2020_Vol 373_Part 2

2020 ] A.D. ENTERPRISE v. UNION OF INDIA 175

3.2 The guidelines framed requires opening of irrevocable letter of credit
in favour of Turkish exporter or to make advance payment of minimum
20% of the total contract value once provisional registration has been grant-
ed. For ease of appreciation the process envisages in guidelines dated
25-6-2019 by department of revenue can be depicted as under :

Registration of Sales Contracts by
Turkish Grain Board (TMO)

Application for registration for Sales
Contract to be filed by Indian Importer
in the office of the Respondent No. 2

Provisional Registration granted by the
Narcotics Commissioner

Advance payment of minimum 20% Option to Indian importer to pay
amount of contract value by Indian minimum amount of 20% of con-
importer to Turkish exporter or open- tracted value as advance or open
ing of irrevocable L.C. in favour of ex- irrevocable L.C. in favour of ex-
porters porter to get final registration.

Application for converting provisional
registration to Final registration

Final Registration by the Narcotics
Commissioner

With above and in terms of MOU, any sales contract which is registered by
the TMO is a valid contract for Narcotics Commissioner and an Indian Im-
porter will submit application for registration of sales contract to Narcotics
Commissioner which has already be registered with TMO. Any other con-
tract which is not registered with TMO will not be treated as valid contract.
Since the petitioner has not made his contract registered with TMO as other
importers did, therefore, his sales contract cannot be registered by Narcot-
ics Commissioner.
3.3 From the above steps, it is clear that it is the option of Indian importer
to pay minimum 20% of amount of contract value to Turkish exporter or to
open a irrevocable letter of credit in favour of such exporter in case he is
desirous to obtain final registration without the stage of provisional regis-

EXCISE LAW TIMES  15th July 2020  193