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2019 (8) TMI 1258 - HC - CustomsGrant of CST Refunds - goods supplied by EOUs to EOUs - HELD THAT:- This Court ruled that the Foreign Trade Policy 20042009 did not limit the benefit of CST reimbursement to an EOU on the purchases made only from a DTA unit. Prima facie, it appears that this decision has been overlooked by the appellate authority. The decision of this Court in Asahi Songwon [2017 (7) TMI 512 - GUJARAT HIGH COURT] is dated 6th July 2017. When the show cause notice was issued, the orderinoriginal was passed, this judgement was not pronounced. When the appeal was being heard, this judgement was already pronounced. As observed by us, prima facie, it appears that the appellate authority has overlooked the position of law, as explained by this Court. We also take notice of the fact that the contention of Mr. Iyer with regard to the delay and recovery after a period of almost eight years is also taken care of by this Court in the case of Asahi Songwon. This Court, in Asahi Songwong, made it clear that it was not permissible for the respondent to make recovery after unduly long period of time. In Asahi Songwon, the delay was almost seven years. Whereas in the case on hand, it is almost more than eight years. Grant of CST refunds - DTA clearance - HELD THAT:- We may look into paragraph 6.11 of the Foreign Trade Policy 20042009. This policy provides for the refund of the CST suffered on the inputs used for the production of final product cleared into the DTA by an EOU - The reading of the Foreign Trade Policy referred to above as well as the condition in appendix 14-I-I of the Handbook of Procedures 20042-009 as it existed until 16th September 2008 appears to be in conflict with each other. The Foreign Trade Policy, more particularly, para 6.11(c)(i) makes it clear that an EOPU shall be entitled to the reimbursement of the CST goods manufactured in India. If that be so, then, in our opinion, the appendix of the Handbook of Procedures could not have been relied upon. There is merit in the submission of Mr. Iyer that the provisions in the FTP govern the statutory scheme of the policy, and in such circumstances, the appendix or the Handbook of Procedures cannot override the FTP provisions. In case of a conflict, the FTP provisions should prevail vis-a-vis the appendix in Handbook of Procedures, which are nothing but a subordinate legislation. The impugned order passed by the Director General of Foreign Trade dated 7th September 2018 is hereby quashed and set aside - Petition allowed.
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