TMI Blog2004 (6) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... has received foreign exchange from the foreign buyers. Foreign Exchange was received by the assessee because the LCs in respect of the said third party were drawn in favour of the assessee. In Assessing Officer's view the convertible foreign exchange should have been gone to the third party, namely, M/s. Bhairav Enterprises. The Assessing Officer has mentioned that the export bills were made in the name of M/s. Bhairav Enterprises, so the actual exporter was the said party and not the assessee. In his opinion the assessee has wrongly shown the sales in its books of account and the sales should have been recorded by the said party as per the accounting principle. In the assessment order it was further enumerated that the export benefits should be allowed to the exporter, i.e .., M/s. Bhairav Enterprises because the quota for export was allotted to this party. Examining the provisions of section 80HHC, Assessing Officer was of the view that for the purpose of deduction under section 80HHC an assessee must himself be the exporter of the goods and also bring in convertible foreign exchange in India. However, he has also record a finding that the said party has not claimed any deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 1989-90 in which the goods exported through own quota valued at Rs. 4,99,61,293 and the export by utilizing the quota of the said party amounted to Rs. 3,90,16,782. From the side of the appellant certain uncontroverted facts were again narrated before us by ld. AR Ms. Aarti Vissanji, can be summarized as follows: (1) The Export contract was booked by the appellant. (2) The letter of credits were in the name of the appellant. (3) The raw material for the purpose of export was procured by the appellant. (4) The manufacturing activity was carried out by the appellant. (5) The appellant undertook all the formalities of shipping of goods and fulfilled all other requirement of export. (6) The payments related to the forwarding and shipping of goods were made by the assessee-firm. All the shipping documents were negotiated by the firm and recorded in its name. (7) All the transactions and transfer of money was through bankers of the assessee-firm. (8) The payments were received in convertible foreign exchange which were credited in the account of the appellant-firm. (9) The third party has also issued a waiver certificate not to claim benefit under section 80HHC. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are to be preserved for record and for claiming the Drawback, REP Licence CCS. Quota." She has also distinguished a decision of Hon'ble Apex Court in the case of Sea Pearl Industries v. CIT [2001] 247 ITR 578. The main distinction ld. AR has drawn was that both the export houses as well as the appellant were claiming the deduction under section 80HHC, therefore, the Hon'ble Court has held that the appellant was not entitled for the benefit. She has also expressed that the Hon'ble Court has considered the Circular No. 466 issued by CBDT dated 14-8-1986 reported in 161 ITR 68 (St.) and on that basis decided the issue which is not applicable in the present context. 6. From the said of the revenue we have also carefully examined the contentions of Shri Sunil Agarwal. Ld. DR has cited certain decisions and stressed upon that the said party was entitled for REP Licence and Duty Drawback as the quota was in its name, therefore, the assessee should not be termed as an exporter. He has argued that any deduction under IT Act should not be allowed so as to defeat the provision of any other enactment. He has expressed this view mainly because of the reason that the export quota was granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law that while interpreting a statutory provision which is beneficial in nature then real intention has to be borne in mind and to be applied in liberal manner. In construing a beneficial statute it is an accepted position of law that the Courts ought to give to it widest operation which its language will permit. The words of such a statute must be so construed as to give the most complete remedy which the phraseology will permit so as to clear that the relief contemplated by the statute shall not be denied to the clause intended to be relieved. With this general principle of interpretation of statute we have to examine the factual matrix of the present case. Uncontroverted facts have also been numbered above and on careful examination one thing squarely emerges that except utilizing the quota of the third party, i.e., Bhairav Enterprises, the assessee has done everything right from getting the export order till the final receipt of the sale price in convertible foreign exchange. The entirety of the facts thus establishes without any doubt that the appellant is the actual exporter. Otherwise also correctness of these facts has also not been doubted. As listed above the fact r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal has restored the entire issue back to examine the applicability of export policy and other relevant rules. Certain questions were framed in that order of the Tribunal requiring reconsideration and re-examination of the facts. On the basis of foregoing discussions now it clearly emerges that all such questions which were raised have been answered from the side of the appellant. The only question yet to be answered is whether there was any infringement of law or disobedience of export policy from the side of the appellant. As far as the revenue is concerned there is nothing to indicate that the assessee has infringed any law specially in utilization of export quota granted by AEPC to the other party. The facts have revealed that the assessee has obtained the orders to export the garments more than the quota allotted to it, therefore, used unutilized quota of the said third party. In our opinion if the quota already granted by the prescribed authority remains unutilized then if it is not an infringement of law then in the interest of earning foreign exchange it is useful to get it utilized by another exporter. As far as the decision of Sea Pearl Industries's case is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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