Chemico Synthetics Limited v. Union of India: Imports of goods

[CASanjay Kumawat]

In Chemico Synthetics Limited v. Union of India 2017 (10) TMI 225 - DELHI HIGH COURT ,  Where the Petitioner prayed for interim relief for the importation of goods. It is to allow the Petitioner to make duty free imports against the Advance Authorization (AA) licenses issued to the Petitioner prior to 1^st July, 2017 where the period of validity of the licences remains unexpired.

The High Court issued the following interim directions :

1. Each Petitioner will be permitted to clear the consignments of imports constituting inputs for the fulfillment of export orders placed on it prior to 1^st July, 2017 without any additional levies, and subject to the quantity and value as specified in the AA licenses issued to it prior to 1^st July, 2017.

2. The above clearance would be subject to (a) verification by the Customs Department that it is in conformity with the quantity and value as mentioned in the Advance Authorization license and (b) ensuring that the extent of credit is available vis-a-vis such AA licenses issued prior to 1^st July, 2017.

3. The above interim direction is further subject to the Petitioner furnishing an undertaking by way of an affidavit filed in this Court within one week from today to the effect that in the case of the petitioner ultimately not succeeding in the writ petition, or failing to fulfill its export obligations, it is liable to pay the entire IGST as was leviable, with whatever interest as the Court may determine at the time of the writ petition.

4. The Petitioner will furnish to the Customs Department the entire list of its AAs that are valid as on 1^st July, 2017 and a list of the export orders placed on the Petitioner prior to 1^st July, 2017
5. It is made clear that the above interim direction will only apply to those imports which are made by the Petitioner for the fulfillment of its export orders placed with it prior to 1^st July, 2017 and not to any export order thereafter.