Duty Entitlement Pass Book (DEPB) extended till 30th September,2011- an analysis of Press Notice of 17th June,2011 and press Report of 13th June,2011 which is prior to the PN.

[C.A. DEV KUMAR KOTHARI]

Duty Entitlement Pass Book (DEPB)  extended till 30^th  September,2011- an analysis of Press Notice of 17^th June,2011  and press Report of 13^thJune,2011 which is prior to the PN

Extension of DEPB scheme:

The GOI has extended the benefit of DEPB by another three months and it will be in force till 30^th September,2011. The decision is a welcome, however, extension of DEPB for a limited period of three months is not proper. It may be that  once again after three months extension will be required. This is because until and unless an alternate mechanism or system is implemented, DEPB need to be continued. Therefore, better course could be to extend the period till further notice instead of for three months only. Author also discuss one more aspect about information being provided to press reporters even before issue of PN.

In this regard the relevant Public Notice – DGFT reads as follows ( with Highlights added by author for easy understanding)

Public Notice -

 

DGFT

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY

(PART-I, SECTION-1) 

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE AND INDUSTRY

DEPARTMENT OF COMMERCE  

PUBLIC NOTICE  NO.    54 (RE-2010) /2009-2014

         NEW DELHI DATED THE    17^th   June, 2011                     

1.   In exercise of powers conferred under Paragraph 2.4 of the Foreign Trade Policy 2004-2009, the Director General of Foreign Trade hereby makes an amendment in Paragraph of 1.1 of the Handbook of Procedures, v1 (RE 2010). 

2.   The concluding phrase of Para 1.1 of HBP v1 reads “……except DEPB Scheme, which shall continue to be operative till 30^th June, 2011”.  Government has now decided that the DEPB Scheme would continue to remain operative for another 3 months, i.e. till 30.9.2011.  Accordingly, the words “till 30^th June, 2011” would get replaced with the worlds “till 30^th September, 2011”. 

3.   The amended para 1.1 of the Handbook of Procedures, v1 would now read as under: 

1.1  “In pursuance of the provisions of paragraph 2.4 of FTP, the Director General ofForeign Trade (DGFT) hereby notifies the compilation known as HBP v.1, HBP v.2 and Schedule of DEPB rates.  These compilations, as amended from time to time, shall remain in force until 31^st March, 2014, except DEPB Scheme which shall continue to be operative till 30^th September, 2011.” 

4.   Effect of the Public Notice:

      DEPB Scheme gets an extension of 3 months from 30.6.2011 to 30.9.2011.    

Sd/-

( Anup K. Pujari)

Director General of Foreign Trade

E-mail:dgft@nic.in

[Issued from File. No. 01/94/180/ 68 /AM12/ PC- 4]

News reports prior to Press Notificaiton:

Before the above Public Notice dated 17.06.2011 we find a news reports  on or around 13^th June 2011.

We find that comments and clarifications  have been reported to press  and these became items of  news reports. Commentary is also found at  http://www.taxmanagementindia.com/wnew/detail_rss_feed.asp?ID=1910 as follows:

Govt extends DEPB scheme for three months till Sept

 

New Delhi, Jun 13 (PTI) The government today said it has extended the popular exports scheme - DEPB - for three more months till September.

The DEPB scheme was due to end on June 30.

"...we have extended Duty Entitlement Pass Book (DEPB) till September," Finance Secretary Sunil Mitra told reporters at the sidelines of a seminar organised by Ministry of Finance and OECD.

However he said that the scheme will be phased out and replaced by duty drawback.

"It (DEPB) will be phased out (and) duty drawback will take its place. We have appointed a committee which we think will take a couple of months to decide all India drawback rates for items currently under DEPB," Mitra said.

Exporters can also ask for brand rate fixation, he added.”

Therefore, we find that information was divulged  to reporters by senior officer that is the  Finance Secretary Sunil Mitra even before a notification was issued by GOI.

The news report also speak about appointment of committee and  that Exporters can also ask for brand rate fixation.

The  important question is whether, telling such secret information to the press reporters, even before the relevant notification was issued was a proper course of action on the part of the Finance Secretary?

The authority for such decision is the Director General of Foreign Trade, therefore, whether it was proper for the Finance Secretary to speak to reporters even prior to the PN was issued/ signed on behalf of the GOI.

Readers are requested to send their views and opinion as this is a matter of public interest.