Page 249 - ELT_15th July 2020_Vol 373_Part 2

2020 ] UNION OF INDIA v. WELCAST STEELS LTD. 231

The petitioner filed Writ Petition No. 1808/2007 before this Court
challenging the order dated 11th January, 2007 and by an order dated
20th January, 2007, this Court admitted the petition with regard to can-
cellation of IEC Code, but directed the petitioner to avail alternative
remedy against the said order dated 20th February, 2007 on deposit of
Rs. 35 lakhs against Rs. 68.32 lakhs towards customs duty and interest
leviable on the Furnace Oil imported by them as ordered by the second
respondent.
The petitioner has since filed an appeal against the order dated 11th
January, 2007 with regard to the demand for Customs duty, interest and
penalty and the same is pending before the Additional Director General
of Foreign Trade, New Delhi. The petitioner has also since deposited
Rs. 35 lakhs in compliance wit the orders of this Court. The petitioner
crave leave to refer to and rely upon the memorandum of appeal filed
before the Additional Director General of Foreign Trade.
The export obligation period in respect of the second license Bearing
number is 710039056 dated 11th July, 2005. Accordingly, by letter dated
10th July, 2007, the petitioner informed the respondents that they had
exported the goods to the tune of Rs. 43.25 crores as against the obliga-
tions to export goods worth Rs. 40 crores.
While the appeal before the Additional Director General is pending,
the second respondent issued a Demand Notice dated 25th July, 2007 in
respect of the second license Bearing No. 710039056, dated 11th July,
2005 on the ground that although the export obligation period expired
on 11th July, 2007 no export documents to show fulfillment of the export
obligation had been submitted in terms of paragraph 4.25 of the Hand-
book of Procedures (hereinafter referred to as ‘the Handbook’).
The petitioner also has two other Advance Licenses Bearing Nos.
710043028, dated 13th February, 2006 and 710045727, dated 27th June,
2006. against these two Advance Licenses also while the petitioner have
completed the export obligation, the petitioner have also availed the
benefit of DEPB since the petitioner had imported only Furnace Oil duty
free and used other inputs/raw materials which are duty paid. The peti-
tioner apprehend that like in the case of first and second licenses, the re-
spondent shall take the same action once the export obligation period in
respect of these two licenses expires on 13th February, 2008 and 27th
June, 2008. All the exports and imports are in accordance with law. The
DEPB benefit availed by the petitioner is 3% of the FOB value and with
effect from 1st April, 2006 the petitioner have undertaken third party ex-
ports as is permissible under the provisions of the FTP and the Hand-
book. The petitioner craves leave to refer to and rely upon the said pro-
visions as and when required. Accordingly, with effect from 1st April,
2006 the DEPB benefit has been availed by the third party (merchant ex-
porter) and not the petitioner but the petitioner apprehend that in view
of the stand taken by the respondent, the goods manufactured by them
and exported in terms of the provisions of FTP and the Handbook shall
be derecognized by the respondents towards the discharge of the export
obligations under the remaining two licenses also.

EXCISE LAW TIMES  15th July 2020  249