UNION OF INDIA (UOI) Vs. RUBFILA INTERNATIONAL LTD.

JUDGEMENT

(1.) The Respondent is engaged in the activity of manufacturing and exporting heat resistant latex rubber threads and has wide ranging exports to several countries. Natural rubber is a major raw material in the manufacture of rubber threads and it was being directly imported. The Respondent applied for and was granted advance licenses under the Advance License Scheme for a period of 18 months. This was pursuant to Para 4.15 of the Export -Import Policy whereunder an applicant would be allowed to import inputs free of import duty subject to the fulfillment of the stipulated export obligation as per the policy laid down by the Government. On 20 -2 -1999, a circular was issued whereby the import of natural rubber under such advance license was no longer permitted and it had to be sourced through State Trading Corporation ('STC'). The Respondent approached the STC for supply of rubber against the advance licenses but on 1 -5 -2001 STC declined its request. On 16 -7 -2003, the Respondent approached the Appellants and pointed out that it had completed its export obligations before procuring duty free raw materials.

(2.) Vide circular dated 10 -10 -2003, the embargo imposed on the import of natural rubber was lifted and it was stated that fresh advance licenses are issued as per normal EXIM policy. The old licenses can be revalidated up to 31 -12 -2003.

(3.) The Respondent represented to the Appellants that period of validity of licenses, that had been in force but couldn't be utilized because of the restrictions/ban, i.e., 31 -12 -2003, was far too short. Accordingly, it requested the extension till 31 -12 -2004. Vide Circular dated 11 -12 -2003 the outer limit was extended till 31 -3 -2004.