LUCKY EXPORTS Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) M /s. Lucky Exports, New Delhi (hereinafter referred to as M/s LEND), a Partnership firm, is engaged in the export of medicines, engineering goods, medical equipment and agro products. As a Government recognized Export House, they execute export orders mainly to Russia. The present dispute is with reference to the supply of ventilators to the Ministry of Defence of the Russian Government. The Ministry of Defence of the Government of Russia entered into a contract with the Appellants for the supply of 255 numbers of Complete Electronic Ventilation System to be used as life -saving devices in the hospitals in Russia under the Ministry of Defence. The Appellants in turn entered into a contract with M/s. NOVO LLC, USA for the supply of equipments relating to the ventilators. They also placed purchase orders on M/s. Erkadi International in Bangalore for the supply of items like graphic monitors, cart/trolley, LCD displays etc.

(2.) PURSUANT to an agreement entered into with Ministry of Defence, Govt. of Russia, the Appellants filed an application to the DGFT for the grant of an Advance Licence for the import of certain components. In the application, the Appellants indicated, that the export was not in freely convertible currency. They further provided a flowchart giving different processes that would be undertaken by them on the components supplied before export. They also provided catalogues of the equipments. M/s. Arden Mechatronics were shown as the supporting manufacturer.

(3.) A licence was issued to M/s. LEND with an export obligation of Rs. 55 crores and restricting imports to the extent of CIF value of 16.29 crores as against 32.59 crores made in the application, with the condition that the technical specification of the components imported should conform to those utilized in the manufacture of the resultant product and should be reflected in the export documents.