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2016 (10) TMI 753 - HC - CustomsExports of valves for industrial uses - Recovery of benefit Focus Product Scheme (FPS) - Denial of benefit of Merchandise Exports from India Scheme (MEIS) under the new policy - legislative intention - Validity of trade notice issued by DGFT - Held that:- The scheme(FPS) came to an end on 31.03.2015. Long after that, DGFT issued the impugned clarificatory circular, in which, it is provided that the intention all along had been to grant the incentives to bicycle parts only. The other items, which are not parts of bicycle appearing in the said description, are not eligible for the benefit. Strictly speaking, though the new policy may not provide a safe guide to interpret the old policy, we may take note of the contents of the new policy also. This is for the reason that if the Government of India noted a mismatch between the heading and the contents of an entry, the reasonable way to resolve the discrepancy would be to delete that portion which was unintentional. DGFT has powers to issue a circular / clarificatrion - However, a clarification cannot run counter to the plain interpretation of the provision and in guise of clarification, an entry cannot be amended. The power to amend an entry would be with the Government of India. Quite apart from the nature of the impugned trade notice, in any case, the respondents could not have stalled processing of the petitioners' applications for export benefits flowing from the MEIS which would stand on entirely different footing. Even if the petitioners were to refund the benefits already received under FPS, the respondents would have to follow the procedure for ensuring recoveries. Merely stalling the petitioners' applications for grant of export benefits flowing under a fresh scheme would simply not be permissible. The impugned trade notice dated 14.12.2015 is quashed. The respondents shall not seek any recoveries of the export incentives granted to the petitioners under FPS and shall process further their applications for export benefits under MEIS in accordance with the provisions made therein. - Decided in favor of petitioners.
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