SESAMA FOODS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner which is an export oriented unit ('EOU') having its office at Ansal Bhavan, Kasturba Gandhi Marg, New Delhi challenged the impugned order dated 15th/16th February, 28th February, 19th April and 18th September 2006 issued by the Respondents seeking to recover a sum of Rs. 3,22,91,926/- stated to be the amount of duty drawback paid to it in excess.

(2.) In terms of a letter of permission dated 18th May 1999 the Petitioner was approved for manufacture and export of sesame seeds in terms of the Export and Import Policy ('Exim Policy') for the period 2002-07. The Petitioner states that its approval was up to 2011.

(3.) According to the Petitioner certain concessions are given to exporters operating from the EOUs to enable them to compete at the international level. Goods manufactured by the Petitioner, the raw material whereof is sourced from the Domestic Tariff Area ('DTA') are eligible to the benefit of duty drawback. The Petitioner claims that it is entitled for refund/rebate of the amount corresponding to the duties both customs and excise suffered or leviable on the inputs that go into the manufacture of the exported products. In particular, the Petitioner relies upon 6.12(a) of the Exim Policy which provides that "supplies from the DTA to EOU will be regarded as "deemed exports" and the DTA supplier shall be eligible for the relevant entitlements under Chapter 8 of the Policy besides discharge of export obligation, if any, on the supplier. Further, notwithstanding the above, the EOU units shall, on production of a suitable disclaimer from the DTA supplier, "be eligible for obtaining the entitlements specified in chapter 8 of the Policy." The said clause further provides that for the purpose of claiming the deemed export duty drawback, the EOU shall get Brand Rates fixed by the Development Commissioner, wherever All Industry Rates of Drawback are not available."