TMI Blog2017 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... stry of Commerce and Industry, Government of India. Therefore, the provisions and the benefits conferred therein cannot be taken away by any subordinate authority or legislation. The petitioner is an EOU, who is purchasing goods as a raw material from another EOU or similar units other than DTA and therefore is entitled to reimbursement of CST in terms of paragraph 6.11(c)(i) of the FTP, 2009-14 and the respondents are not legally justified in withholding the same for the reason that the petitioner has not purchased raw material from DTA on the basis of the Circular dated 14.01.2015, which is not only in conflict with the provisions of the FTP but is illegal otherwise also which cannot override the FTP. Authority responsible for the reimbursement of CST to the petitioner - Held that: - The Hand Book of the Procedures under the FTP clearly lays down that the claims for reimbursement of CST shall be presented inter alia to the designated officer of the STP and that the disbursing authority of such claimed amount will inter alia be the designated officer of the STP, who will make payment to the units claiming reimbursement - the liability is squarely cast upon the designated off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nits and inter alia provides that in addition to those incentives, EOU, Electronics Hardware Technology Park (hereinafter referred to as EHTP) units /Software Technology Park (hereinafter referred to as STP) units /Bio Technology Park (hereinafter referred to as BTP) units shall be entitled for reimbursement of CST on goods manufactured in India and in case, there is delay in refund of it or non-settlement of claim thereof within 30 days of receiving the application for reimbursement, simple interest @ 6% per annum would be payable. The Hand Book of the Procedure under the FTP vide Appendix 14-I-I provides that all units shall present their claim for reimbursement of CST in the prescribed form to the Development Commissioner of the SEZ or the Designated Officer of the EHTP /STP. It further provides that Disbursing Authority of the reimbursement claim of the CST will be Development Commissioner /Designated Officer of the EHTP /STP, who will make payments to the concern units. Paragraph 6.11 of the FTP and the relevant clauses of the Hand Book of Procedures in respect to reimbursement of CST to EOUs are reproduced hereinbelow for the sake of convenience :- 6.11. Entitlem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as the CST Act). In the light of the above policy and the procedure, the petitioner, who had paid CST on the raw material purchased, submitted claim for refund of the CST for the period of July to September, 2014 and October to December, 2014 plus January to March, 2015 to the STPI on the goods purchased from EOU /SEZ units. The STPI allowed reimbursement of part of the CST in respect of the goods purchased from DTA and rejected for remaining in respect of goods supplied by the EOU /SEZ units. On representation, respondent no.3 vide letter dated 13.01.2015 opined that CST reimbursement is not permissible for the goods purchased from EOU /SEZ /STP /EHTP /BTP units. In expressing the above opinion, respondent no.3 relied upon the Circular No. STPN /CST /2015 dated 14.01.2015 issued by the Director, STPI of India, which provided that reimbursement is not permissible for the goods /items procured from EOU /SEZ /STP /EHTP /BTP units. It is this background of the facts and circumstances, which had lead the petitioner to prefer these petitions claiming reimbursement of the CST even on goods purchased from EOU /SEZ /STP /EHTP /BTP units and challenging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. The use of the expression in addition to in Clause (c) of paragraph 6.11 of the FTP clearly denotes that the benefit of reimbursement of CST admissible inter alia to EOU is addition to any other incentive, which may have been provided earlier. Therefore, the aforesaid Clause (c) is not dependent upon Clauses (a) and (b) of paragraph 6.11 of the FTP. Accordingly, if the petitioner is manufacturing goods in India and is an EOU, it is entitled to reimbursement of CST. The petitioner admittedly fulfills both the above conditions. The respondent no.3 has denied reimbursement of CST to the petitioner solely on the ground that it had not procured raw material from the DTA relying upon the impugned Circular dated 14.01.2015. The aforesaid paragraph 6.11(c)(i) do not stipulates that for the purposes of reimbursement of CST, the unit has to procure raw material from any particular source, namely, DTA. The source of procurement of raw material by such unit is not relevant and immaterial for the purposes of claim for reimbursement of CST. The linking of the said Clause (c) of paragraph 6.11 with Clause (a) of the said paragraph is completely misconceived inasmuch as the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s taken up in appeal to the Division Bench. The Division Bench dismissed the appeal holding that having regard to scheme of chapter 6 of the FTP and the plain reading of provisions of paragraph 6.11(c)(i) makes it clear that even purchases of the goods from EOU as against DTA unit by an EOU would entitle it to seek reimbursement of CST. In view of reasons recorded above and the Division Bench decision of the Madras High Court, we are also of the opinion that the petitioner is an EOU, who is purchasing goods as a raw material from another EOU or similar units other than DTA and therefore is entitled to reimbursement of CST in terms of paragraph 6.11(c)(i) of the FTP, 2009-14 and the respondents are not legally justified in withholding the same for the reason that the petitioner has not purchased raw material from DTA on the basis of the Circular dated 14.01.2015, which is not only in conflict with the provisions of the FTP but is illegal otherwise also which cannot override the FTP. The second aspect of the matter involved in this petition is the authority responsible for the reimbursement of CST to the petitioner. The Hand Book of the Procedures under the FTP clearly lays dow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
