TMI Blog2010 (5) TMI 821X X X X Extracts X X X X X X X X Extracts X X X X ..... 23rd February 2000 passed by the Appellate Committee of Respondent No.1 informing the Petitioner that the appeal regarding the DEPB was not maintainable before that Committee. 2. The brief background to the present petition is that the Petitioner is a reputed exporting house and has been in the business of exporting and manufacturing leather garments and woven jackets since 1995. The Petitioner received a letter for supply of 10,000 pieces of jackets from a company in the United States of America (USA). Negotiations for that order commenced in February 1998 and it culminated in the Petitioner receiving a purchase order on 19th March 1998. Payment for the above order was supported by irrevocable letter of credit (L/C) issued by the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the maximum DEPB credit that an exporter of knitting and woven garments will get is ₹ 40/- per piece. 6. The Petitioner received the DEPB benefit at 23% on the first shipping bill dated 26th March 1998 through DEPB licence dated 18th February 1999 issued by the Respondents. However for all shipments made after 15th April 1998 rate of DEPB was 20% and the value cap ₹ 200/-. For the said shipments from 14th May 1998 to 26th May 1998, the Petitioner was issued DEPB at ₹ 40/- per piece. However, the Petitioner was refused grant of DEPB benefit at 23% against the balance nine shipping bills. 7. The Petitioner then represented to the Respondents that it should be granted DEPB benefit at 23% against the aforementioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July 1999 addressed to the Petitioner, the Respondent No.2, DGFT rejected the request on the ground that the exports in question were executed after 15th April, hence the rate of DEPB and value cap announced on 15th April 1998 were applicable. The appeal filed by the Petitioner against the said decision of the DGFT, was not entertained by the Appellate Committee. 10. In the counter affidavit filed to this petition, the Joint DGFT maintains that all exports that took place after the announcement of the Exim policy for 1998-1999 would be governed only by the amended policy. DEPB credit is calculated according to the rate applicable on the date of export. It is asserted that para 1.5 of the Exim policy was only in respect of the imports o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 would also apply to contracts entered into prior to 1st January 1979. Confirming the order of the learned Single Judge holding that the benefit could not be denied as far as the contracts already entered into prior to 1st January 1979, the Division Bench of this Court observed as under: The Cash Compensatory Support was made available to the exporters only after verification of the facts of their firm contracts of exports and the actual exports made on the basis thereof. Therefore, there can be no element of doubt that the prices of the garments exported or to be exported under the Scheme took into consideration the allowance which would be available from the Govt. under the Scheme. Without it the prices would not have been viable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts to make exports at prices which would not have been viable to them in the absence of the cash credit assistance. Why was the Govt. giving assistance? Because it was aware that otherwise Indian exports will not be able to stand in the international market because of lower international price. The Govt. wanted to encourage exports and, therefore, provided the cash assistance. The promise of the Govt. to provide the assistance led the petitioners to enter into firm commitments which otherwise they would not have made. Based on the promise the petitioners have altered their position. The Govt. cannot be allowed to go back on its promise. The arguments on behalf of the Govt. fails. 15. This Court finds that the above decision applies t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es made under 21 shipping bills the supply order dated 19th March 1998 as mentioned in para 6 of the writ petition. After adjusting the DEPB benefit already given to the Petitioner, the Respondent DGFT will compute the differential amount and communicate it to the Petitioner in writing. The payment of the said amount will be made to the Petitioner within a further period of four weeks thereafter together with 6% simple interest per annum thereon from the date of filing of the writ petition i.e. 17th May 2000 till the date of payment. 18. The writ petition is accordingly disposed of in the above terms with costs of ₹ 5,000/- which will be paid to the Petitioner by the Respondents within eight weeks. - - TaxTMI - TMITax - Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
