INTERNSIL P LTD Vs. UOI

JUDGEMENT

(1.) The petitioner is a 100% Export Oriented Unit (EOU), engaged in the manufacture of integrated circuits. The petitioner has its manufacturing unit located in Santa Cruz Electronics Export Processing Zone (SEEP2), Mumbai and has been operational since 1979.

(2.) With a view to encouraging exports in foreign earnings, the Government of India, in April 1988, announced a scheme for grant of Cash Compensatory Support (CCS) to 100% Export Oriented Unit (EOU) situated in Export Processing Zones (EPZ). The scheme was initially valid for the year 1988-89 and was extended from time to time till 2.7.1991, when the cash assistance on the exports made from the country was abolished.

(3.) The petitioner claimed the CCS benefits based on the notional FOB value of exports which was arrived at by adding, inter alia, even the cost of raw materials which were, in fact, not paid for by the petitioner.