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TMI Blog2021 (7) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... umbudur (JM FTZ SEZ/Mannur) Kancheepuram - 602105/R2. 3. Since the scrips in question were issued by the Additional Director General of Foreign Trade, Mumbai, the aforesaid authority has been impleaded as R3 by order of this Court dated 01.10.2019. 4. The brief facts that are germane to the disposal of the issues arising from these Writ Petitions are as follows: i) The petitioner is an exporter of menthol and natural essential oils. ii) The instant transactions form part of the supply of the commodities to various purchasers, who in turn supply the same to Colgate Palmolive. iii) The petitioner admittedly claims benefits under the Customs Act, 1962 and allied policies, such as duty drawback as well as benefits under the Goods and Services Tax Act, 2017 (in short 'GST Act'), such as input tax and other available benefits. iv) The petitioner, wishing to avail the benefit under the Merchandise Exports from India Scheme (MEIS) which was part of the Foreign Trade Policy, effective 01.04.2015, made an application to R3 and was issued scrips 1, 2 and 3 by R3. These scrips were current for the period 2018 to 2020 and have not been cancelled at any time. Benefit under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for registration by R2 is not just contrary to law but amounts to review of the original order passed, for which there is no provision under either the policy or any regulation. ii) The scrips have not been cancelled at any time till their expiry or even thereafter and hence in the absence of cancellation, for which a specific procedure is statutorily provided, R2 has no authority to have rejected registration and TRA. iii) Reference is made to Section 9(4) of Foreign Trade (Development and Regulation) Act, 1992 (in short 'FTDR Act'), which provides for a procedure for cancellation of scrip. Admittedly, this procedure has not been invoked and hence the scrips, being valid, ought to have been registered as requested by the scrip holder. iv) In response to the argument put forth by R2 to the effect that the original document (two scrips) have been taken back by the petitioner, the petitioner would state that it is only for the purpose of ensuring their safety. In any event it is not the case of the revenue that had they been allowed to be retained by the respondents, R2 would have registered the same. In fact, there is no dispute that the impugned order of rejection wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s between the petitioner and the buyer, UTEXAM. These documents have been filed as part of document compilation dated 22.06.2021, also supplied to the respondents. No objection has been raised by learned counsel for the respondents for admission of the same and for being considered in the resolution of the issues arising in this matter. 7. The following documents have been filed. Jindal Drugs Pvt. Ltd 229 Nariman Point, Mumbai 400 021 Kind Attention: Mr.Ajay Jindal Business Award -Cornmint Oil Redistilled M07595 & Cornmint Oil Tri-rectified M08377 1. Specifications: Colgate Subsidiary CP Global (Excluding India) CP Global (Excluding India) Delivery at FIZW at Mannur/Vallarpuram Village, Sirperumbudur Taluka, District Kanchipuram, TN 602 105 FTZW at Mannur/Vallapuram Village, Sriperumbudur Taluka, &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 29.06.2018 od Citi Bank NA, Mumbai ICG Branch have also been placed on record evidencing receipt of consideration in US dollars in relation to the exports made. The application filed under MEIS Scheme contains, among various other particulars, the shipping bill details as follows: DIRECTORATE GENERAL OF FOREIGN TRADE 44 Merchandise Exports From India Scheme - E-COMMERCE VERSION ANF 3A Similar details in regard to shipping bills accompany the other two applications as well. 11. Upon a comparison of the above details contained in the bills of export of goods under which the petitioner has claimed duty drawback, with the bills of the parties to the transaction, I find that the numbers and date tally. It is thus clear that the export documents have been executed by the petitioner. The petitioner also confirms that the FTWZ has neither claimed nor been granted any benefit under MEIS Scheme in regard to the instant transactions. If at all such claims had been advanced, they would have been barred under the provisions of 3.06 (vii) of the policy note. 12. The impugned order reads thus: OFFICE OF THE AUTHORISED OFFICER JMATADEE FREE TRADE ZONE (P) LTD., PERAMBAKKAM ROAD, MAN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the scrips should be issued only after due scrutiny and, upon the slightest suspicion that the claim may be unacceptable, the Officer has to call for physical documents and decide the fate of the claim by way of a speaking order, if rejected. The issuance of the scrip thus pre-supposes due application of mind by R3 to all relevant stipulations. Clause 3.06 which sets out ineligible categories must thus be assumed, not just to have caught the attention of R3 but to have been thoroughly examined, prior to issuance of the scrip. 15. Moreover, the provisions of Section 9(4) of the FTDR Act reads as follows: 9. Issue, suspension and cancellation of licence. - ......... (4) The Director General or the officer authorised under sub-section (2) may, subject to such conditions as may be prescribed, for good and sufficient reasons, to be recorded in writing, suspend or cancel any licence granted under this Act: Provided that no such suspension or cancellation shall be made except after giving the holder of the licence a reasonable opportunity of being heard. (5) An appeal against an order refusing to grant, or renew or suspending or cancelling, a licence shall lie in like man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the consignment. The stipulation in Clause (vii) deals with exports made by a unit in the FTWZ. DHL, the FTWZ does not export the consignments but only facilitates such exports. The exports are thus, by the petitioner through DHL to a destination abroad. 22. To a query as to why the transaction was so structured, the petitioner explains stating that the consignments in question were, purchases by UTEXAM on behalf of Colgate Palmolive for supply at any number of the units of the latter. As and when the destination is decided, DHL is intimated of the same and the consignments shipped to that destination. 23. The exports in this case have already taken place at the point when the petitioner executes the relevant documents and the consignments are stored in the FTWZ, awaiting confirmation of the destination. This would avoid the circuitous route of shipment to UTEXAM at Ireland, and then onward to a final destination accompanied by multiple transportation costs and logistical complications. The role of DHL in this transaction is that of a warehouse and nothing more. The concept of 'ship to' and 'bill to', as used in this case, has been recognised under the GST re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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