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2018 (9) TMI 674 - HC - CustomsDuty Credit Scrip (DCS) - period of validity - loss of the scrip - extension of time for such clearance - Did the facts justify such extension and whether the Committee committed a serious error in refusing to exercise such powers? Held that:- DCS and similar scheme are in the nature of exporter incentives in order to encourage export, providing the exporters with certain additional benefits in terms of credit which could be utilised for making imports in future. Such scrips are often times freely transferable. In order to manage the fund flow, scrips would necessarily have validity period. Such incentive cannot be made available with no reference to the period before which the utilisation must be made - While reconsidering the petitioner’s request and after granting personal hearing, the Committee in its later decision dated 3-1-2017 cited additional reasons namely, the duty credit scrip is a transferable instrument having specific validity. The petitioner had the option to sale or transfer it within its validity period. The petitioner did not do so initially for a period of over 12 months. The petitioner did not apply for issuance of duplicate scrip with all necessary documents. No genuine hardship is noticed. No justification for not utilising the scrip for 12 months is given. While recognising the powers of the Committee to revalidate the period of scrip, we must recognise its discretionary nature. As noted, when the scrip gives certain financial benefits to an exporter as an incentive, simultaneously, the policy makers having provided a specific period of validity of utilisation thereof, the extent of discretion of the concerned authority to extend the period of validity or not gets considerably enlarged. Unless it is shown that the exercise of such power borders to the level of perversity, the Court would show a healthy restraint in such matters. In the present case, it may be that some time was consumed by the Government bodies in responding and granting duplicate DCS, nevertheless, we cannot lose sight of the fact that after its first issuance, the petitioner did not utilise or transfer it for over one year out of total period of six months. Once again it was the petitioner or its CHA who was responsible for loss of the scrip. Finally even after expiry of period of validity of 31-1-2015, the petitioner applied for extension of the validity period only on 17-4-2015. At all stages the petitioner had thus shown a degree of slowness. Petition dismissed.
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