MALIK TANNING INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners impugn policy circular No.42 (RE-2010)/2009-14 dated 21.10.2011 issued by the Directorate General of Foreign Trade (hereafter referred to as "impugned circular") inasmuch as it curtails the benefit available under Focus Product Scheme in respect of "Technical Textiles" to only 33 items with retrospective effect from 01.04.2011.

(2.) The petitioners are in the business of exporting products and in the ordinary course of business had exported polyester printed and dyed fabrics. In terms of paragraph 3.15 of the Foreign Trade Policy 2009-2014, the petitioners were granted Duty Credit Scrips equivalent to 2% of the FOB value of the said products exported by them. Apparently, the said scrips have been utilized/sold by the petitioners. And, as such, the petitioners have already received the benefit available, with respect to the products exported by them, in terms of the Focus Product Scheme (hereafter 'FPS') under the Foreign Trade Policy. The benefit under the FPS was granted to the petitioners as the products exported were considered to be "Technical Textiles" as notified under Appendix 37D of the Handbook of Procedures published by the Government of India.

(3.) The impugned circular has the effect of excluding the products exported by the petitioners from the definition of technical textiles and thus, has rendered the petitioners ineligible for claiming the incentive under the FPS. The grievance of the petitioners is compounded as the impugned circular excludes the products exported by them from the definition of technical textiles with retrospective effect. Thus, the benefits that have already been availed and utilized by the petitioners, are now sought to be recovered.