TMI Blog2023 (5) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... LD THAT:- As could be seen from the provisions of the scheme, the objective of the clause is to ensure that an entity which has taken some benefit in the form of importing capital goods without payment of duty, the same would not be entitled to exit from the scheme without making good the duties that it had availed off. The objective of the scheme is essentially to ensure that an entity does not take the benefit of the scheme and thereafter withdraw from the scheme and make a profit out of the entire venture. The petitioner admittedly made an application seeking for exit from the scheme and it was its specific case that it had not imported any capital goods or procured any capital goods in respect of project. As could be seen from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Respondents (By Sri. Pradeep K.R., Advocate For R-1; Sri. H. Shanthi Bhushan, DSGI For R-2 R-3) ORDER 1. This writ petition is filed challenging the order passed by the Director of Software Technology Parks of India on 01.05.2015. 2. By the said order, the request of the petitioner to permit it to exit from the scheme has been rejected on the ground that petitioner had not submitted periodic performance report during the validity of letter of permission and as agreed in legal undertaking which amounted to non-compliance of the conditions. The order states that the petitioner should vacate all the non-software technology park units and resubmit the application seeking for exit with proof of said vacation. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued by the Customs and Central Excise authorities and the final debonding order by the Development Commissioner, the unit shall not be entitled to claim any exemption for procurement of capital goods or input. The unit can however, claim Advance License/DEPB/Duty Drawback. 4. As could be seen from the provisions of the scheme, the objective of the clause is to ensure that an entity which has taken some benefit in the form of importing capital goods without payment of duty, the same would not be entitled to exit from the scheme without making good the duties that it had availed off. The objective of the scheme is essentially to ensure that an entity does not take the benefit of the scheme and thereafter withdraw from the scheme and m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority, the petitioner had not imported any capital goods or procured any capital goods for setting up the software technology park. It is, therefore, clear that it was not obliged to reimburse any amounts for exiting from the scheme. 8. The clause relating to exit from the scheme does not entitle the authority to reject the application on the ground that the periodical performance report had not been furnished. In this case, the authority has in fact stated that the petitioner did furnish the IT park progress report as per its email dated 10.06.2009. The mere noncompliance of a procedural requirement cannot prevent the petitioner from exiting from the scheme. 9. However, learned Deputy Solicitor General vehemently contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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