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2004 (11) TMI 583

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..... l Economic Zone (for short SEZ ), has filed this petition under Article 226 of the Constitution and prayed that the impugned orders dated 1.7.2003 (Annexure : A) and 9/10.6.2003 (Annexure : B) passed by the respondent No.2 be quashed and set aside. The petitioner has also prayed for issuance of writ of mandamus or direction, issuing direction to the respondent to grant Duty Entitlement Pass-Book (for short DEPB Entitlement ) as per its Application for the period from 5.6.2002 to 31.3.2002 as per Export and Import Policy 2002-2007, vide Notification dated 5.6.2002. 3. The Government of India, Ministry of Commerce Industries, issued Notification No.1/2002-07 dated 31.3.2002 in exercise of powers conferred u/s.5 of the Foreign Trade (De .....

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..... We are concerned with Clause : 7.9 (a) in this petition. Therefore, the same is reproduced hereunder : (a) Supplies from the DTA to SEZ units shall be eligible for the following : (I) DTA supplier shall be entitled fro :- (i) Relevant entitlements under Paragraph 8.3 of the Policy (ii) Discharge of Export performance, if any, on the supplier. Government of India, Ministry of Commerce and Industry, issued notification No.7/2002-07 dated 5.6.2002 in exercise of powers conferred u/s.5 of the Foreign Trade (Development and Regulation) Act, 1992 (No.22 of 1992) read with Paragraph : 1.1 of the Export and Import Policy, 2002-07, adding sub-clause (iii) to Paragraph 7.9 (I) of Chapter VII of the Policy, which .....

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..... nt to the Office of the Development Commissioner, Kandla Special Economic Zone vide their Application dated 26.5.2003. Non-granting of DEPB resulted in very high procurement cost for basis raw material and as a consequence thereof their export competitiveness was affected. It was also stated in it that despite clear provisions of the EXIM policy the said benefit is not provided to them, therefore, necessary instruction be issued to the competent Authority to consider their case sympathetically and extend the benefit of DEPB to the supplies from DTA which was procured by them during financial year. 5. The Development Commissioner, Kandla, SEZ, by its letter dated 1.7.2003 informed the petitioner that though the provisions in the Exim Poli .....

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..... ted 5.6.2002 and by not denying the benefit under it the petitioner has made to suffer tremendous loss. He, therefore, submitted that the impugned orders/letters dated 1.7.2003 and 9/10.6.2003 (Annexure : A B respectively) passed by the Development Commissioner and Joint Development Commissioner respectively be quashed and set aside. In support of his submission Shri Thakore has placed reliance on the Judgment of the Hon'ble Supreme Court in the case of M/S. MOTILAL PADAMPAT SUGAR MILLS CO.LTD. v/s. THE STATE OF UTTAR PRADESH ORS., reported in AIR 1979 SC 621 and the Judgment of the Karnataka High Court in the case of UNION OF INDIA v/s. YOKOGAWA BLUESTAR LTD.m, reported in 2001 (129) E.L.T. 598 (Kar.). 7. We have already narrate .....

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..... rom 1.4.2002 to 31.3.2007. We have already reproduced earlier in part of this Judgment the four objectives for issuing this export and import policy. After issuing the said policy under Notification dated 31.3.2002 coming into force with effect from 1.4.2002 considering the interest of business community the Government thought it fit to extend the benefit of DEPB in lieu of draw back for supply made to SEZ or unit in SEZ, therefore, the notification dated 5.6.2002 (Annexure : C) was issued. But, it is pertinent to note that it is not stated in the said notification that the same will come into force with effect from any particular day. It was obviously for new financial year starting from 1.4.2003 and, therefore, the corresponding notificat .....

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