NIRMA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners had filed this petition initially with a prayer for issuance of a writ holding and declaring action of respondent No. 3 i.e. the Assistant Commissioner of Customs, Varanasi in not issuing Re-transfer Release Advices in respect of three DEPB licences purchased by the petitioners as illegal and bad in law. The petitioners had consequently prayed for a direction to such authority to issue such Release Advices. During the pendency of the petition, certain developments took place. The Joint Director General of Foreign Trade, New Delhi issued an order dated 30-3-2000 cancelling the three DEPB licences. By way of amendment, therefore, the petitioners added the prayer challenging such cancellation order also. The brief facts leading to the present petition are as fellows. The petitioner No. 1 is a company registered under the Companies Act and is engaged in manufacturing detergent cakes, detergent powder etc. For the purpose of its manufacturing activity, the petitioners purchased through their agents, three DEPB licences issued by the authorities under the Director General of Foreign Trade in favour of one M/s. Yash Exports. Alongwith covering letter dated 12-3-1999 issued by the Foreign Trade Development Officer, the said Yash Exports was issued DEPB licence for a duty credit of Rs. 8,04,038/-. The licence was transferable. It is this licence that the petitioners purchased on or around 20-3-1999. The authorities also endorsed such licence in favour of the petitioners as is apparent from page 17 of the compilation which is part of Annexure A to the petition. The petitioners during the same period purchased two more licences issued in favour of M/s. Yash Exports of the identical amount of Rs. 8,04,038/-.

(2.) With the aid of these licences, when the petitioners imported certain goods needed for their manufacturing activities, and offered to pay customs duty on such imports through the DEPB credits so purchased by them, the customs authorities refused to permit such imports. After some correspondence when the authorities did not budge, the petitioners filed the present petition and prayed for a direction already noted earlier.

(3.) Subsequently, the Joint Director of Foreign Trade passed the order dated 30-3-2000 and cancelled all the three licences. This order also, the petitioners have challenged in this petition.