Page 248 - ELT_15th July 2020_Vol 373_Part 2

230 EXCISE LAW TIMES [ Vol. 373

titioner’s business to a complete standstill inasmuch as the petitioner are
prevented from making any imports whatsoever, severely hampering
the manufacturing operations of the petitioner; their business is suffering
huge losses; the petitioner are at a risk of delay in supplying all their ex-
port orders which will expose them to penalties, losses and a loss of both
reputation and customers; lead to idling of approximately 500 perma-
nent and temporary workers. The petitioner say and submit that to offset
the high power cost, they obtained an Advance Licence for import of du-
ty free fuel (Furnace Oil) on Actual User Condition, as permitted under
the General Note for Fuel Policy, subject to the terms and conditions set
out in Chapter 4 of the Foreign Trade Policy. It is to be noted that the pe-
titioner have not availed any Advance Licence facility for import of any
other raw material listed in the SION for manufacturing the HCGMB.
That Chapter 4 of FTP contains the provisions relating to Duty Ex-
emption Scheme, which in turn, contains, different schemes formulated
by the Government of India for extending incentive to exporter. One
such scheme is the Advance License Scheme, whereby Licenses are is-
sued for import of raw material duty free for use in the manufacture of
export products, with an obligation to export the goods as per the quan-
tity and value mentioned on the license within the stipulated time peri-
od. Such licenses are issued based on the fixed standard which are called
Standard Input Output Norms (hereinafter referred to as the “said
norms”). The petitioner applied for and was granted four Advance Li-
censes, details whereof are given in a Statement. That under all the said
four Advance Licenses, the petitioner had applied for and were therefore
permitted to import, duty free only Furnace Oil which is one of the in-
puts permissible under the said norms. The petitioner did not opt for du-
ty free import of other input/raw material, although permissible under
the said norms. In the manufacture of the said goods, the petitioner also
uses various other inputs/raw materials. As duty paid material/inputs
were used by the petitioner in the manufacture of the said goods export-
ed by them, including under the said four Advance Licenses, the peti-
tioner applied for issue of Duty Exemption Pass Book (DEPB) licenses
which are issued post export under Chapter 4 of FTP. That there is no
prohibition or error in either the said Act or the FTP in availing the bene-
fit under DEPB and Advance Licenses in respect of the same export
goods. This is more so, when as stated hereinabove, duty paid materi-
als/inputs were used in the manufacture of goods for export and as per
well recognized and time tested policy of the Government of India with
taxes are not exported, upon export of the said goods, the petitioner ap-
plied for DEPB since the said goods exported by the petitioner carried
duty paid raw materials/inputs on which duty was paid and barring
Furnace Oil, duty free benefit was not availed in respect of the other raw
materials/inputs permissible under the said norms.
Despite the fact that the petitioner fulfilled the export obligation in
time and as per the quantity and value endorsed on the said licenses by
an order dated 11th January 2007 in respect of the first Advance License
bearing No. 710034247 dated 23rd January, 2004, the second respondent
passed an order dated 11th July, 2007 directing the petitioner to pay cus-
toms duty along with interest and penalty @ 1% of the unfulfilled export.
By the same, the second respondent also cancelled the IEC Code.
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