Page 145 - ELT_1st September 2020_Vol 373_Part 5

2020 ] KANAK EXPORTS v. UNION OF INDIA 583

“Status Holder” means an exporter recognized as “Export House/Trading
House by DGFT/Development Commissioner or Star Trading
House/Super Star Trading House” by the Director General of Foreign
Trade.”
8. Paragraph 3.7.2.1 gave the ‘Special Strategic Package for Status
Holders’. This petition is primarily concerned with sub-paragraph (vi) of Clause
3.7.2.1 and is reproduced hereinbelow :
“Special Strategic Package for Status Holders”
3.7.2.1 The status holders shall be eligible for the following new/special
facilities :
xxxxx
(vi) Duty free import entitlement for status holders having incremental
growth of more than 25% in FOB value of exports (in free foreign exchange)
subject to a minimum export turnover of Rs. 25 crore (in free foreign ex-
change). The duty free entitlement shall be 10% of the incremental growth
in exports. Such entitlement can be used for import of capital goods, office
equipment and inputs for their own factory or the factory of the associ-
ate/supporting manufacturer/job worker. The entitlement/goods shall not
be transferable.”
9. Paragraph 3.10 gave the six ‘thrust sectors’ which would be given the
necessary boost for achieving the objective of the Policy.
10. By Notification No. 28, dated 28-1-2004, Paragraph 3.7.2.1 in Chap-
ter III of the Exim Policy was amended. After sub-paragraph (vii), five Notes
were inserted by way of an amendment. The same are reproduced hereinbelow :
“Note 1. - For the purpose of calculating the value of exports, the following
exports shall not be taken into account, namely :-
(i) Re-export of imported goods or exports made through trans-
shipment;
(ii) Export turnover of units operating under SEZ/EOU/EHTP/
STPI Schemes or products manufactured by them and exported
through DTA units;
(iii) Deemed exports (even when payments are received in Free
Foreign Exchange) and payment from EEFC account;
(iv) Service exports;
(v) Supplies made by one status holder to another status holder;
(vi) Export performance made by one status holder on behalf of
other status holder will not be eligible for entitlement under the
scheme. Supplies made or export performance effected by a non-
status holder (Merchant exporter/Manufacturer with any export
performance in 2003-04) to a status holder if the applicant as well as
the non-status holder have less than 25 per cent incremental growth
over their respective previous years direct export turnover;
(vii) The exports made by an applicant within a group and the
group to which it belongs has individually less than 25 per cent in-
cremental growth of export.
Note 2. - The incremental growth of exports by an exporter shall not, direct-
ly or Indirectly, be transferred to any other exporters.

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