TMI Blog2024 (2) TMI 1102X X X X Extracts X X X X X X X X Extracts X X X X ..... 72 ('the Act') read with Foreign Trade Policy (2004-2009) - (i) Whether the period of validity for availing the Duty Credit Benefits under the TPS as 24 months from the date of issue of scrips is without jurisdiction and illegal ? - HELD THAT:- Section 5 of the Act empowers the Central Government to announce the export and import policy and also to amend the policy from time to time. Section 6 of the Act empowers the Central Government to appoint any person as D.G.F.T to advice the Government in formulation of the policy to carry out the policy and to exercise such powers as is conferred upon him by the Central Government in implementing the EXIM policy. Section 6(3) of the Act provides power to amend that policy cannot be delegated to D.G.F.T and it would be prerogative to the Central Government. It is in this background, the Central Government has chosen to designate the D.G.F.T as the Ex Officio Additional Secretary to the Government of India. Because the substantial part of the scheme is contained in the FTP and the procedural part of it has to be laid down in the Handbook of Procedures, it is expressly authorised under the FTP, the Handbook of Procedures is al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uties which are brought in by the amendment need not be given exemption by adjustment of duty credit under the TPS. Accordingly, the impugned notification, was issued, whereunder by Entry 56, it was made clear limiting the exemption on imports availed under Duty Credit Certificates to the levy of additional duties under Sections 3(1), 3(3) and 3(5). Thereby, it was ensured that there was no change in the scope of exemption that has been originally granted by the notification, dated 10.07.2006. Thus, it cannot be said that the Entry 56 takes away any vested right. A reading of Sections 3(7) and 3(9) would show that the legislature consciously did not employ the term as additional duty . It is only the trade notice which mentions the manner of collection as if they would be collected as additional duty. Thus, mentioning as such in the trade notice will not make the I.G.S.T or G.S.T Compensation Cess as additional duty. Accordingly, we answer this question that the impugned Entry 56 merely clarifies and makes the existing position abundantly clear and does not in any manner take away any vested right and as such, is not illegal or ultravires. (iii) Whether the petitioner is en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l be no order as to costs. Consequently, W.M.P.No.3458 of 2022 is closed. - Hon'ble Mr.Sanjay V.Gangapurwala, Chief Justice And Hon'ble Mr.Justice D.Bharatha Chakravarthy For the Petitioner (in all the cases) : Mr.P.S.Raman, Senior Counsel for Mr.Adithya Reddy For the Respondents (in all the cases) : Mr. AR.L.Sundaresan, Additional Solicitor General of India, Assisted by Mr.P.G.Santhosh Kumar, for RR-1 to 5, Mr.Rajnish Pathiyil, Senior Central Government Standing Counsel for R6 COMMON ORDER HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY A. The Petitions: All these three petitions are filed by the same petitioner and the reliefs prayed for are inter-connected and as such, are taken up and disposed of by this common order. 1.1. The petitioner Company was entitled to avail the set off in respect of the duty and additional duty payable on its imports on account of the benefit conferred under a scheme, namely Target Plus Scheme (hereinafter referred to as ' TPS '). It could only exercise its option of set off to the tune of Rs. 89,29,04,149.25 ps, even though the petitioner is entitled to adjust for a total sum of Rs. 305,72,81,517 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exports. 2.1. As per paragraph No.3.7.1, Star Export Houses will be entitled for a duty credit based on the percentage of the incremental exports achieved by them. As per paragraph No.3.7.2, a minimum export turnover of Rs. 10 crores has to be achieved for eligibility. Paragraph No.3.7.3 prescribes the percentage of incremental growth to be achieved and the rate of duty credit entitlement. The three slabs mentioned therein are as follows :- Percentage Incremental Growth Duty Credit Entitlement (As a % of the incremental growth) 20% and above but below 25% 5% 25% or above but below 100% 10% 100% and above 15% (of 100%) Paragraph No.3.7.6 provides that the duty credit can be used for import of any inputs, capital goods including spares, office equipment, professional equipment and office furniture. 2.2. The Central Government, in exercise of its powers under Section 25(1) of the Customs Act, 1962 , also issued notification No.73/2006-Cus., dated 10.07.2006 exempting the goods imported into India against the Duty C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mental percentage growth of Star Export Houses for determining the benefits under the TPS . Both these notifications were to operate retrospectively. The said notifications were again challenged before the Bombay High Court by several star houses including the petitioner. All the above petitions, which were pending before the Bombay High Court were transferred and tagged along with W.P.(C).No.27 of 2008 before the Hon'ble Supreme Court of India. Ultimately, the Hon'ble Supreme Court of India, in Director General of Foreign Trade and Anr. Vs. Kanak Exports and Anr. (2016) 2 SCC 226 , by the judgment, dated 27.10.2015, held the vested rights accrued in favour of the beneficiaries who achieved the target stipulated in the TPS , thereby becoming eligible for grant of Duty Credit Entitlement, cannot be taken away by amending the FTP retrospectively. It held that the exporters got a vested right to avail Duty Credit Entitlement of 15%, 10% or 5% depending upon the quantum of growth achieved by them. It held that the notifications in question can only be effective from the dates on which they were issued. 2.6. As a matter of fact, as per the judgment of the Hon'ble S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the scrips under the TPS was issued to it only on 24.02.2021. 2.8. However, in the meanwhile, by fixing 24 months period outer limit to exhaust the duty credit and also by excluding the I.G.S.T and G.S.T Cess and it is virtually made impossible for the petitioner to exhaust the duty credit. Therefore, challenging the above notifications, by which, 24 months period is prescribed and Entry 56 is made excluding the I.G.S.T and G.S.T compensation Cess and also for a Mandamus to extend the validity of the duty credit for another period of 15 years, these three Writ Petitions are filed. The case of the petitioner is that once it has been held that it is the vested right of the petitioner, which accrued under the TPS , the same cannot be indirectly taken away by these amendments and time constraints. C. The Case of the Respondents: 3. The Writ Petitions are resisted by the respondents by filing a counter-affidavit. It is the case of the respondents that the validity of the Duty Credit Scrips issued under the TPS shall be as per the paragraph No.3.2.5(VII) of the Handbook of Procedures . The contention of the petitioner is an afterthought. The aim and objective of the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner. He would rely upon the judgment of the Hon'ble Supreme Court of India in Tamil Nadu Electricity Board and Anr. Vs. Status Spinning Mills Ltd. and Anr. (2008) 7 SCC 353 for the proposition that in matters, where there is a huge delay, even if provisions relating to time limit are contained in the scheme, by application of Doctrine of Promissory Estoppel, the rights accrued cannot be permitted to be whittled down by adopting a literal interpretation of the provisions. He would rely upon the judgment of the Hon'ble Supreme court of India in Commissioner of Central Excise Vs. M.P.V Engg. Industries (2003) 5 SCC 333 to contend that in matters of grant of exemption, a liberal approach should be adopted if it does not result in violence to the language of the notification. 4.2. Mr.P.S.Raman , the learned Senior Counsel, would further rely upon the judgment of this Court in Ramsays Corporation Pvt. Ltd. Vs. Commissioner of Customs, Chennai IV (2022) 381 ELT 372 (Mad.) for the proposition that a condition which is dependent on an action of the public authorities over which if the importer has no control and if the condition could not be complied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P Duty Entitlement Passbook Scheme The validity period of DEPB for import shall be as prescribed in HBP v1. Para 4.17 of the FTP Advance Authorization The validity period of advance Authorization for import shall be as prescribed in HBP v1. In the instant case, there is no express delegation of such a power and as such the D.G.F.T exceeded his jurisdiction in prescribing a time period. 4.4. The learned Senior Counsel would rely upon the following judgments : Case Citation State of Orissa and Ors. Vs. Tata Sponge Iron Limited 2007 (9) VST 419 - Para No.13 Deepak Fertilizers Petrochem Vs. Designated Authority 2006 (203) ELT 370 (Del.) - Para No.19 Sales Tax Officer, Ponkunnam Vs. Kl Abhram (1967) 20 STC 367 (SC) - Para No.4 Narendra Udeshi Vs. Union of India MANU/MH/0578/2002 - Para Nos.14, 15. 4.5. Moving on to his next submission, Mr.P.S.Raman , learned Sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the Government of India, Ministry of Commerce and Industry has published the Handbook of Procedure . Thus, Clause 3.2.5(VII) of the Handbook of Procedures provides the validity for a period of 24 months from the date of issue and it expressly prohibits revalidation of Duty Credit Entitlement Certificate. Therefore, only as per the conditions, the petitioner can claim the concession. 4.7. It can be seen that the Duty Credit Certificate has been issued to the petitioner on 24.02.2021. The petitioner has also substantially used the same. While so, in the month of February, 2022, the Writ Petition is filed questioning the two years validity period. As a matter of fact, two years validity period was very much there even when the scheme was framed in the year 2004. Therefore, only because the petitioner's own business circumstances were so that it did not import sufficient quantity of the permissible goods, the petitioner has now approached Courts to challenge the very provision and scheme. The petitioner cannot approbate and reprobate. 4.8. Mr.AR.L.Sundaresan , learned Additional Solicitor General of India would submit that the alleged delays cannot in any way result ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), 3(3) and 3(5) of the Customs Tariff Act, 1975 . Since all the duties as it stood as on the date of the scheme / exemption i.e., Sections 3(1), 2(3) and 3(5) of the Customs Tariff Act, 1975 were exempted, the notification used the expression that the additional duty leviable thereon under Section 3 of the Customs Tariff Act, 1975 are also exempted. However, after amendment to the Customs Tariff Act, 1975 , new levies are introduced under Sections 3(7) and 3(9) which were hitherto not there. The notification, by way of Entry 56, was issued by substituting the words as stated above. The result is that there will be no exemption with regard to the levies which were introduced by way of Sections 3(7) and 3(9) of the Customs Tariff Act, 1975 . No portion of the benefit which was earlier available is taken away. Alternatively, he would submit that even if it results in any form of restriction, it is in the realm of a policy decision relating to a concession and therefore, cannot be questioned by the petitioner. 4.11. Mr.AR.L.Sundaresan , learned Additional Solicitor General of India would rely upon the judgment of the Hon'ble Supreme Court of India in ALD Automotive Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not reconstruct or make new exemptions, the said proposition has been categorically laid down in the judgment of the Hon'ble Supreme Court of India in State of Gujarat and Anr. Vs. Ambika Mills Ltd., Ahmedabad and Anr. (1974) 4 SCC 656 . Mere hardship arising in the course of its business cannot be a ground to attack a fiscal legislation, as fiscal legislation is based on the fiscal intelligence of the State, which is ever evolving one as the society advances and it is difficult to obtain perfect uniformity and perfect equality in matters of taxation and the same has been recognised by the Hon'ble Supreme Court of India in Spences Hotel Pvt. Ltd. and Anr. Vs. State of West Bengal and Ors. (1991) 2 SCC 154 . If there is rational and reasonableness in a classification, then, the same has to be accepted and for this proposition, the judgment of the Hon'ble Supreme Court of India in Charanjit Lal Chowdhury Vs. Union of India and Ors. AIR 1951 SC 41 is relied upon. Further reliance is placed on the judgment of the Hon'ble Supreme Court of India in Union of India Vs. Aflon Engineering Corporation (2001) 10 SCC 677 to contend that the Government can restric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner, amend that policy: Provided that the Central Government may direct that, in respect of the Special Economic Zones, the foreign trade policy shall apply to the goods, services and technology with such exceptions, modifications and adaptations, as may be specified by it by notification in the Official Gazette. 6.1. In exercise of the said power under Section 5, the FTP in question i.e., 2004-2009 was published Paragraph No.2.4 of the Foreign Trade Policy (2004-2009) reads as follows:- 2.4. Procedure. The Director General of Foreign Trade may, in any case or class of cases, specify the procedure to be followed by an exporter or importer or by any licensing or any other competent authority for the purpose of implementing the provisions of the Act, the Rules and the Orders made thereunder and this Policy. Such procedures shall be included in the Handbook (Vol. 1), Handbook (Vol. 2), Schedule of DEPB Rate and in ITC (HS) and published by means of a public notice. Such procedures may, in like manner, be amended from time to time. The Handbook (Vol. 1) is a supplement to the EXIM Policy and contains relevant procedures and other details. The procedure of availing b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of third-party exports, the name of the supporting manufacturer/manufacturer exporter shall be declared. (3) Exporters shall have the option to apply for benefit either under the Target Plus Scheme or under the Vishesh Krishi Upaj Yojana, but not both in respect of the same exported product(s). Provided that in calculating the entitlement under Para 3.7.3 the total eligible exports shall be taken into account for computing the percentage incremental growth but the duty credit entitlement shall be arrived at on the eligible exports reduced by the amount on which the benefit is claimed under Para 3.8.2. (4) All exports including exports under free shipping bill verified and authenticated by Customs and gems and jewellery shipping bills but excluding exports specified under Para 3.7.5, shall be eligible for benefits under the Target Plus Scheme. (5) In respect of export of cut and polished diamonds only those shipments would be taken into account for computation of eligible exports under the Scheme where a minimum of 10% value addition has been achieved. 3.7.4. Applicant companies. Companies which are star export houses as well as part of a group company shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isted in Chapters 1 to 24 of ITC (HS) Classification of Export and Import Items except the following shall be allowed: (i) Garlic, peas and all other vegetables with a duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import Items. (ii) Coconut, areca nut, oranges, lemon, fresh grapes, apple and pears and all other fruits with a duty of more than 30% under Chapter 8 of ITC (HS) Classification of Export and Import Items. (iii) All spices with a duty of more than 30% under Chapter 9 of ITC (HS) Classification of Export and Import Items (except cloves). (iv) Tea, coffee and pepper as per Chapter 9 of ITC (HS) Classification of Export and Import Items. (v) All oilseeds under Chapter 12 of ITC (HS) Classification of Export and Import Items. Further, natural rubber as per Chapter 40 of ITC (HS) Classification of Export and Import Items shall also not be allowed for import under the Scheme. Import of all edible oils classified under Chapter 15, shall be allowed under the Scheme only through STC and MMTC. 3.7.7. Cenvat/Drawback. Additional customs duty/excise duty paid in cash or through debit under Target Plus shall be adjusted as Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irectly, Licensing Authority concerned shall endorse the names of such supporting manufacturers on the certificate as co-licensees. IV. The last date for filing of such applications shall be 31st December. V. For each duty credit certificate, split certificates subject to a minimum of Rs. 5 lakh each and multiples thereof may also be issued. A fee of Rs. 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage. VI. The duty credit certificate shall normally be issued with a single port of registration. However the applicant may choose for different ports of registration for each split certificate. VII. The duty credit certificate shall be valid for a period of 24 months from the date of issue. Revalidation of duty credit entitlement certificate shall not be allowed. VIII. The applicants shall within one month of the last imports made under this certificate or within one month of expiry of the certificate which ever is earlier, submit a statement of imports/utilization made under the certificate as per 'Aayaat Nirya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In our opinion, the phrase in the prescribed manner occurring in section 8(4) of the Act only confers power on the rulemaking authority to prescribe a rule stating what particulars are to be mentioned in the prescribed form, the nature and value of the goods sold, the parties to whom they are sold, and to which authority the form is to be furnished. But the phrase in the prescribed manner in section 8(4) does not take in the time-element. In other words, the section does not authorise the rule-making authority to prescribe a timelimit within which the declaration is to be filed by the registered dealer. The view that we have taken is supported by the language of section 13(4)(g) of the Act which states that the State Government may make rules for the time within which, the manner in which and the authorities to whom any change in the ownership of any business or in the name, place or nature of any business carried on by any dealer shall be furnished . This makes it clear that the Legislature was conscious of the fact that the expression in the manner would denote only the mode in which an act was to be done, and if any time-limit was to be prescribed for the doing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;ble Supreme Court of India held as follows :- B. Discussion on the challenge to the role and authority of DGFT to issue the notifications and trade notice and interpretation of the words total quantity 15. At the outset, we must record that the importers, and in our opinion rightly, have not raised the contention that DGFT could not have notified the impugned notifications. The notifications themselves record that they were published by the Ministry of Commerce and Industry, Department of Commerce, Directorate General of Foreign Trade. The first paragraph of the notification states that they had been issued by the Central Government in exercise of powers conferred under Article 77 of the Constitution. Clearly, the notifications were issued by the Central Government, and not DGFT that had performed the ministerial act of publication. The decision to amend and issue the notification was of the Central Government. Neither Section 3(2) nor Section 6(3) of the FTDR Act was violated. This Court in Delhi International Airport Ltd. v. International Lease Finance Corpn. [Delhi International Airport Ltd. v. International Lease Finance Corpn., (2015) 8 SCC 446] , had referre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve times the value of the goods, services or technology, whichever is greater. Section 11 of the Customs Act, 1962 provides that the Central Government may by a notification in the Official Gazette prohibit, absolutely or subject to conditions as specified, import or export of any good. The listed purposes are wide and range from conservation of foreign exchange and safeguarding of balance of payments, avoiding shortage of goods, prevention of surplus of any agricultural or fisheries product, prevention of serious injury to domestic production, establishment of any industry and lastly compendiously includes any other purpose conducive to the interest of the general public . Under clause (d) of Section 11 of the Customs Act, goods imported or exported (or attempted to be imported or exported) contrary to any prohibition are liable to confiscation. Thus, the above survey of relevant decisions cited by both the sides, it would be clear that (i) When any benefit is governed by a statute, it cannot be restricted or taken away by a subordinate legislation; (ii) Even if it is provided by the parent legislation that the procedures can be laid down in the subordinate legislation, that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... validity was prescribed by the notification mentioned above on 07.04.2006. As a matter of fact, when in the earlier round of litigation, the retrospective amendment of EXIM policy affecting the rights under the TPS was challenged before the Hon'ble Supreme Court of India in Kanak Exports ' case (cited supra ), none of the petitioners thereunder including the present petitioner complained about the prescription of 24 months period of validity of the Duty Certificate. Suffice it to say that when the TPS was introduced in the FTP , simultaneously, the Handbook of Procedures in Volume - I also prescribed the said validity period of 24 months. Having availed the benefit with the said period prescribed and just because now in the year 2021, due to its business reasons, wherein, the petitioner is unable to exhaust the entire duty credit it cannot now belatedly challenge the prescription of 24 months and therefore, we hold that there is no infirmity or illegality in Clause 3.2.5(VII) of the Handbook of Procedures. Accordingly, we answer this question. G. Question No.(ii ): 7. Section 3 of the Customs Tariff Act, 1975 is extracted hereunder :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and (ii) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962 (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include (a) the duty referred in in subsections (1), (3) and (5); (b) the safeguard duty referred to in sections 85 and 8C; (c) the countervailing duty referred to in section 9, and (d) the anti-dumping duty referred to in section 9A : Provided that in case of an article imported into India,-- (a) in relation to which it is required, under the provisions of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and (b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is (i) the goods specified by notification in the Official Gazette under sub-section (1) of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by the Central Government in this behalf. (4) In making any rules for the purposes of sub-section (3), the Central Government shall have regard to the average quantum of the excise duty payable on the raw materials, components or ingredients used in the production or manufacture of such like article. (5) If the Central Government is satisfied that it is necessary in the public interest to levy on any imported article whether on such article duty is leviable under sub-section (1) or, as the case may be, sub-section (3) or not such additional duty as would counter-balance the sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportation in India, it may, by notification in the Official Gazette, direct that such imported article shall, in addition, be liable to an additional duty at a rate not exceeding four per cent of the value of the imported article as specified in that notification. Explanation. --In this sub-section, the expression sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article: Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States or, if a like alcoholic liquor is not produced or manufactured in any State, then, having regard to the excise duty which would be leviable for the time being in different States on the class or description of alcoholic liquor to which such imported alcoholic liquor belongs. Explanation--In this sub-section, the expression the excise duty for the time being leviable on a like article if produced or manufactured in India means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... III of the Schedule to the medicinal and Toilet Preparations (Excise Duties) Act, 1955 (16 of 1995), the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under clause (2) of the said Explanation. Explanation--Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section. Provided further that in the case of an article imported into India, where the Central Government has fixed a tariff value for the like article produced or manufactured in India under sub-section (2) of section 3 of the Central Excise Act, 1944, the value of the imported article shall be deemed to be such tariff value. Explanation--Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section. (3) If the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of calculating under sub-section (5), the additional duty on any imported article, the value of the imported article shall, notwithstanding anything contained in sub-section (2), or section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of (i) the value of the imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 (52 of 1962) or the tariff value of such article fixed under sub-section (2) of that section, as the case may be; and (ii) any duty of customs chargeable on that article under section 12 of the Customs Act, 1962, (52 of 1962), and any sum chargeable on that article under any law for the time being in force as an addition to, and in the same manner as, a duty of customs, but does not include (a) the duty referred to in subsections (5), (7) and (9); (b) the safeguard duty referred to in sections 8B and 8C; (c) the countervailing duty referred to in section 9; and (d) the anti-dumping duty referred to in section 9A. (7) Any article which is imported into India shall, in addition, be liable to integrated tax at such rate, not exceeding forty per cent as is leviable under section 5 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remain unsold, the value or the proportionate value, as the case may be, of such goods shall be determined in accordance with the provisions of sub-section (8). Explanation-- For the purposes of this sub-section, the expression transaction value , in relation to warehoused goods, means the amount paid or payable as consideration for the sale of such goods. (9) Any article which is imported into India shall, in addition, be liable to the goods and services tax compensation cess at such rate, as is leviable under section 8 of the Goods and Services Tax (Compensation to States) Cess Act, 2017 on a like article on its supply in India, on the value of the imported article as determined under sub-section (10) or subsection (10A), as the case may be. (10) For the purposes of calculating the goods and services tax compensation cess under sub-section (9) on any imported article where such cess is leviable at any percentage of its value, the value of the imported article shall, notwithstanding anything contained in section 14 of the Customs Act, 1962 (52 of 1962), be the aggregate of (a) the value of the imported article determined under sub-section (1) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion as they apply in relation to the duties leviable under that Act. 7.1. Before the amendment, the additional duties were levied under sub-sections 1, 3, 5 of the Section 3. Sections 3(2), (4), (6)-(8) prescribe the procedure for carrying out the levy of additional duties. By the amendment of the year 2017, Section 3(7) is amended to provide for an additional levy equivalent to I.G.S.T. Similarly, Section 3(9) is inserted providing for a levy equivalent to the GS.T Compensation Cess. According to the Central Government, these additional duties which are brought in by the amendment need not be given exemption by adjustment of duty credit under the TPS . Accordingly, the impugned notification, dated 29.06.2017 was issued, whereunder by Entry 56, it was made clear limiting the exemption on imports availed under Duty Credit Certificates to the levy of additional duties under Sections 3(1), 3(3) and 3(5). Thereby, it was ensured that there was no change in the scope of exemption that has been originally granted by the notification, dated 10.07.2006. Thus, it cannot be said that the Entry 56 takes away any vested right. 7.2. Section 3 of the Customs Tariff Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the entire duty credit which it is entitled to. As rightly pointed out by the learned Additional Solicitor General of India and held by the Hon'ble Supreme Court of India in Jain Exports Pvt. Ltd. 's case and Ambika Mills Ltd., Ahmedabad 's case (cited supra ), this Court cannot widen or enlarge the scheme by extending the period by another 15 years as that would amount to laying down of the scheme by the Court itself. There cannot be equitable considerations in these kind of matters as the concession has to be availed as per the scheme in force. It is not for the beneficiaries to claim in what manner and to what extent the exemption or concession would be appropriate. Reference can be made to the judgment of the Hon'ble Supreme Court of India in Union of India vs. Aflon Engineering Corporation (2001) 10 SCC 677 . In matters of levy, classification and exemption, a fair amount of discretion and free play is vested in the State and in matters relating to economic legislation, mere crudility or inequality in the complicated experimental economic legislation cannot result in striking down of the very action. Useful reference in this regard can be made to th ..... 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