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2011 (3) TMI 112 - BOMBAY HIGH COURTConversion of licence - The petitioner is aggrieved by the decision of the CESTAT dated 11/5/2010 as also the larger Bench decision of the CESTAT dated 18/1/2008, wherein it is held that the licensing authorities do not have the power to amend the licence with retrospective effect – the Foreign Trade Policy empowers the DGFT to exempt any person or class or category of persons from any provision of Foreign Trade Policy or any procedure and that the amendments carried out by the DGFT cannot be the subject matter of scrutiny and challenged by the customs authorities - The licensing authority has held that the petitioner has fulfilled the export obligation under the 10% EPCG licence, by exporting goods 6 times the CIF value of the capital goods imported and accordingly export obligation discharge certificate has been issued - Once the licensing authority has found that the licence conditions have been fulfilled, it would not be open to the customs authorities to contend that the imports under the licence are contrary to law and take action against the licence holder - The larger Bench decision of the CESTAT dated 18/1/2008 and the Division Bench decision of the CESTAT dated 11/5/2010 to the extent they hold that the licensing authorities do not have the power to amend the licence with retrospective effect from the date of granting the licence, set aside - The decision of the customs authorities seeking to recover duty with interest and penalty on the footing that the petitioner has violated condition No.5 of Notification No.29/97 is quashed and set aside.
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