SHELL EXPORTS (KANDLA) Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner has filed this petition challenging the action of the respondent authorities in not granting interest on the benefits of DEPB scheme released belatedly.

(2.) Brief facts are as under. Petitioner is a proprietary concern and is engaged in the business of manufacturing of textile articles. The petitioner has a manufacturing unit situated at Kandla SEZ. On the exports made by the petitioner of such goods, the Government of India grants export incentives. Such incentives could be in the nature of duty draw back or at the option of the exporter be in the nature of Duty Entitlement Passbook Scheme ('DEPB' for short). The petitioner opted for DEPB scheme. In the course of activities, the petitioner had supplied certain goods to other units situated in SEZ area and claimed that the sales were in the nature of deemed export under the Foreign Trade Policy and the petitioner was therefore entitled to benefits of DEPB in relation to such sales also. For the period between 05.06.2002 to 01.04.2003 on such supplies to the other SEZ units, the petitioner's DEPB scrip entitlement came to Rs.42,39,445/- The petitioner therefore applied to the competent authority on 26.05.2003 for grant of such DEBP benefits. Such application was rejected on the ground that the circular laying down the procedure to be followed for supplying the goods for claiming DEPB was issued only on 01.04.2003. Therefore, according to the authorities, supplies made by the petitioner before 01.04.2003 did not qualify for DEPB benefits.

(3.) The petitioner challenged such stand of the department before the High Court by filing Special Civil Application No.11755 of 2003. The petition was dismissed by the Division Bench of this Court by judgment dated 03.11.2004. The petitioner challenged such judgment before the Supreme Court. Supreme Court allowed the SLP by judgment reported in case of Shell Exports (Kandla) v. Union of India reported in 2016 (336) E.L.T. 10 (S.C.), by making following observations: