MARICO INDUSTRIES LTD. Vs. COMMISSIONER OF CUSTOMS (EP)

JUDGEMENT

(1.) THE appellant is engaged in the processing and refining of indigenous/imported edible oils. During the relevant time, coconut oil was canalized item under the provisions of foreign trade policy and could be imported only through State Trading Corporation. The DGFT vide public notice No. 45/04 -2009 dated 14 -1 -2005 added a new paragraph 4.4.6 to the Hand Book of Procedure Volume 1, inter alia providing as under: Items reserved for imports by State Trading Enterprises cannot be imported against advance licence. However those items can be procured from State Trading Enterprises against ARO issued to advance licence holder.

(2.) IT is the appellant's say that vide letter dated 22 -2 -2005 they sought a clarification from Commissioner of Customs (Export Promotion) regarding the documentation required for import of coconut oil through State Trading Corporation against AROs. In the said letter, they had specifically set out the arrangement proposed to the State Trading Corporation and sought confirmation from the Commissioner of Customs about the correctness of the procedure that it intended to follow for the import of the goods in question. On 19 -4 -2005, the appellant entered into an associationship agreement with State Trading Corporation. On 21 -6 -2005, they made an application to the Joint Director, DGFT for issue of AROs against ten advance licences for procurement of coconut oil from State Trade Corporation. Along with this application, the appellant also enclosed a copy of the agreement entered into with State Trading Corporation in this regard.

(3.) ON 30 -6 -2005, Ministry of Commerce issued Notification 11 (RE -2005/2000 -09 dated 30 -6 -2005 by which they inserted third sentence in para 4.1.13 which reads as under: The State Trading Enterprises are also allowed to sell the goods on high sea sale basis to the advance licence holders.