TMI Blog2005 (1) TMI 703X X X X Extracts X X X X X X X X Extracts X X X X ..... hop at KFTZ on the condition that there should be maximum utilization of indigenous steel as raw material and that any import of steel was to be done only after taking prior approval of the Working Group. The units which are located in the Free Trade Zone like that of the appellant in KFTZ is entitled, inter alia, to the following facilities and incentives:- (i) An assured supply of power and good quality of water, is available in these zones at reasonable rates. These zones are also well served by banks, clearing and forwarding agencies, postal and telecommunication facilities and customs clearance facilities. (ii) Simplified procedures coupled with single point clearance. (iii) Non-requirement of import licence as all imports into the zones have been placed under the Open General Licence (OGL). The customs duty is not leviable. (iv) Exemption from central excise duties and other levies on products manufactured within the zones. (v) Treating raw materials, components etc. supplied to these zones from rest of the country as exports and their eligibility for all export benefits. It means easy availability of high quality inputs at lower cost. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s unit in Kandla, exported the same to Malaysia. The appellant filed its claim with the Government of India for reimbursement of price difference in accordance with the Price Reimbursement Scheme. The Government rejected the appellant s claim by its order dated 12.2.1992. Appellant filed Writ Petition No. 5499- 5500 of 1992 impugning the said order of rejection. The learned Single Judge allowed the writ petition by his judgment and order dated 8.6.1993. It was held that the appellant would be entitled to the reimbursement of the difference in prices of indigenous steel and the imported steel. Accordingly, a direction was issued to the Government to reimburse the appellant with the difference in the price of indigenous steel and the imported steel. The Government filed an appeal before the Division Bench of the High Court in Writ Appeal Nos. 943 and 944 of 1993. The appellate court reversed the judgment of the learned Single Judge and held that the appellant was not eligible to claim the benefit of reimbursement under the IPRS as the raw material procured by the appellant from domestic sources amounted to deemed export . It is a common case of the parties that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him that the Division Bench has erred in holding that the transaction of procurement of steel by the appellant from domestic supplies SAIL and TISCO was a deemed export so as to deprive the appellant of the benefit of IPRS. According to him, deemed export is only a legal fiction used in the Import Export Policy in contradistinction to physical export so that certain consignments made from one domestic area to another domestic area within the territory of India are deemed to be exports for the purpose of conferring certain benefits which are otherwise available only for physical exports so that suppliers of indigenous steel to domestic area become eligible to claim the said export benefits and the said concept has no relevance to the physical export made by the appellant by procuring indigenous steel at domestic price from domestic supplier, both being mutually exclusive. The Government of India had formulated the IPRS in order to ensure that the supply of steel required by the engineering exporters for their export contracts is made available to them at international prices w.e.f. 9-2-1981 so as to enable them to compete in the global market and, therefore, the High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f IPRS for export effected in the year 1985-86 under the circumstances could not arise. Even otherwise, it is evident as per the terms of the IPRS itself that it did not cover contracts for deemed exports . The admitted fact is that the appellant was entitled to import its raw materials from Domestic Tariff Area (DTA) for its unit located in Free Trade Zone at international price from DTA or at international price under Open General Licence (OGL). Every import of raw material from DTA to FTZ is deemed export as defined in para 190(g) of Import and Export Policy which provides for categories of supplies which will be treated as deemed export and include supplies made in India to units in FTZs. Quite plainly, therefore, the supplies of raw materials made by DTA for the units of the appellant in FTZ would be deemed export in terms of the definition at para 190(g) of Import and Export Policy and thus on terms of IPRS itself, the appellant will not be covered by the IPRS for the benefits under it. It was submitted by the counsel for the appellants that since the supplies made from the DTA were not made at the international price, these units will not be entitled to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , agreed to procure steel from SAIL and TISCO at a much higher price determined by JPC only on the assurance that it will be entitled to the reimbursement of the differential price under the IPRS. Since the appellant had purchased the steel/pig iron at a higher price from the domestic market at the instance of the Working Group and on the assurance given that he would be reimbursed of the difference between the domestic price and the international price, the Government is estopped from denying the benefit of reimbursement of the differential price under the IPRS. As against this, counsel for the respondent submitted that no representation had ever been made on behalf of the Union of India or its officers that benefits of IPRS would be extended to the appellant. That applicability of Promissory Estoppel was not a pure question of law. The appellant was required to provide precise factual data in support of his plea. It was for him to show as to how supplies made to it were not deemed exports . The appellant should have placed the factual data to show that the supplies had not been made to it at the international price which it failed to do. Particulars of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... qually unsustainable in the facts and circumstances of the case. Having regard to the nature of the advance licence-import and export later there is no room for this argument. The discretion inhering in the authority to take into consideration the exports effected after the date of filing of the application for advance licence does not detract from its essential character, as explained hereinabove. We may also mention that no precise data has been furnished by the appellant in support of the said plea. In the absence of such data, the plea of promissory estoppel is misconceived. The appellant has to establish the various ingredients of this rule, as enumerated by this Court in Motilal Padampat Sugar Mills Co. Ltd. Vs. State of U.P. (1979 (2) SCC 409) and other subsequent decisions. It is not a pure question of law. In the present case, the appellant has failed to furnish the precise data in support of the pleas raised in the Court. What to talk of precise data, in support of its claim, the appellant has failed to furnish any data whatsoever. It has failed to set out as to how the supplies made to them were not deemed exports or that the supplies were not made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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