KOSHAMBH MULTITRED PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has challenged decisions dated 27.9.2016 and 3.1.2017 passed by respondent no.3 and one dated 22.6.2016 passed by respondent no.1 in the following background.

(2.) The petitioner is a company registered under the Companies Act and is engaged in manufacturing and export. The petitioner was issued Duty Credit Scrip ("DCS" for short) by the respondent authorities on 31.7.2013. This certificate could be utilised by the petitioner for payment of excise duty on domestic procurement upto the extent of duty credit which in case of the petitioner happened to be Rs.26,04,733/-. The limit for the purpose of such clearance was 18 months. In other words, the last date of validity of the scrip was 31.1.2015. As per the scheme, such DCS had to be registered with the Customs authorities. According to the petitioner, such scrip was handed over to the petitioner's Customs House Agent ("CHA" for short) on 12.8.2014 for registration. However, the original was lost by CHA on 14.8.2014. An FIR to this effect was also lodged on 19.9.2014. The petitioner therefore, made an application to the concerned authority on 26.9.2014 requesting for issuance of duplicate DCS. Certain queries were raised by the concerned authority on 24.11.2014, particularly asking the petitioner to supply the utilisation certificate from the Customs authority. On 24.11.2014 itself, the petitioner therefore, applied to the Deputy Commissioner of Customs, Mundra Customs and SEZ, to issue non-utilisation certificate of DCS. Such nonutilisation certificate was provided by the petitioner to DGFT on 15.12.2014 and on the basis of which the said authority cancelled DCS issued to the petitioner on 31.7.2013. On 9.1.2015, Foreign Trade officer, Vadodara, issued a duplicate DCS to the petitioner. Such DCS was sent by the petitioner to CHA on 22.1.2015 for registration and on 29.1.2015, the same was duly registered. However, the validity of the duplicate certificate being co-terminus with the original one, expired on 31.1.2015. The petitioner therefore on 17.4.2015 wrote to the Joint Director General of Foreign Trade, Vadodara, and requested to extend the validity of duplicate DCS. It was pointed out that duplicate certificate was issued on 9.1.2015. The petitioner could not utilise the same nor find a buyer looking to extremely short period of time between its registration and the date of expiry. On 29.12.2015, the petitioner wrote to the Foreign Trade Development authority reiterating the request for extension of the validity of duplicate DCS urging that the authorities had necessary power to do so. Such request came to be rejected by the Policy Relaxation Committee under the Director General of Foreign Trade which in its meeting dated 27.9.2016 had recorded as under :

(3.) On 31.12.2016, the petitioner made a detailed representation and urged the respondent authorities to grant extension of the validity period. Case of the petitioner was reconsidered by the Committee in its meeting held on 3.1.2017 when the petitioner was also afforded personal hearing. Oral as well as written submissions were considered. The Committee however, reiterated its earlier decision making the following observations :