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2015 (8) TMI 728 - HC - CustomsFulfilment of export obligation – Group Company – Export Promotion Capital Goods Scheme – Petitioners alleged that benefit of utilization of excess exports of group company in computation of export obligation was, granted to EPCG License holder –Respondent No. 2 considered case of Petitioners as group company in accordance with paragraph 9.28 of FTP was rejected by observing that M/s. Tin Plate India Ltd. and Petitioners were not group company – Held that:- Policy Interpretation Committee observed that petitioner admitted that they do not hold 26% or more equity in M/s. Tata Consultancy Services Ltd., hence in terms of para 9.28 of FTP, they cannot be treated as group company – Perusal of definition of “Group Company” reveal that two or more enterprises, ought to be in position directly or indirectly to exercise 26% or more voting rights in other enterprise – Committee completely overlooked requirement stipulated in para 9.28 as requirement was not of direct control – Requirement was fulfilled by indirect control as well – If definition was only to allow singular entity to claim benefits and not when it was associated, then one could have understood interpretation placed –However, when it was permitted by policy maker that group company to claim benefits ought to have direct or indirect control in other enterprise then, requirement was fulfilled – Petitioners’ case clearly falling within parameters/ criteria evolved in para 9.28 that we have no alternative but to quash and set aside decision of Policy Interpretation Committee – Decided in favour of Petitioner.
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