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2019 (1) TMI 85 - HC - CustomsAdvance authorization scheme - Import Policy after GST - duty free import of inputs which are physically incorporated in the exported goods - exemptions in terms of Para 4.01 (a) (i) of Foreign Trade Policy, 2015-20 - Held that:- The import is actually a replenishment of inputs used in the already exported goods. As such, it was averred that complying with condition No. 1 cannot be fulfilled by the petitioner at the time of import of inputs - Similarly, the petitioner expresses difficulty in fulfilment of pre- import conditions in the absence of explicit definition for pre- import condition. What is disallowed to the petitioner and allowed to others of the same class should be demonstrated by the petitioner. That is the test for arbitrariness. The petitioners had no occasion to demonstrate their case in the test of arbitrariness. Needless to mention, GST laws are a self contained legislations. The laws were promulgated after necessary constitutional amendments. The preposition that the GST levy subsumes the erstwhile levies of CVD and SAD in lieu of Excise duty and VAT can be of no avail to the petitioner. More so, the petitioner is estopped from claiming relief in view of Para 4.02 of the FTP that AAs are issued in accordance with the policies and procedures in force as on the date of the issue of Advance Authorization - Even by not allowing exemption of IGST at the time of import, no benefit in the AA scheme is altered by the Government, though collateral costs get fastened on the petitioner and the likes by way of blockages in cash flow and attendant interest liabilities. And clearly, it is a matter of public policy. And rightly, the choice of policy is for the decision maker, in this case the Government, to make and not for the Court. Nor has been established before this court that the decision suffers from perversity, irrationality or arbitrariness. The petitioner's plea of vagueness in the definition of pre-import condition is hollow. The intend and purpose of pre-import condition can be made out from Para 4.03 of FTP and Annexure 4 J of the HBP. The multiple schemes available in the FTP is only to have a fine balance between the policy entitlements of the exporters and to safeguard the interests of revenue. Petition dismissed - decided against petitioner.
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