BHILWARA SPINNERS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule, returnable forthwith. By consent, petition is taken up for final hearing.

(2.) The petitioner is aggrieved by the decision of the CESTAT dated 11/5/2010 as also the larger Bench decision of the CESTAT dated 18/1/2008, wherein it is held that the licensing authorities do not have the power to amend the licence with retrospective effect.

(3.) The petitioner is engaged in the business of manufacture and sale of yarn. The petitioner had applied for and obtained Export Promotion Capital Goods licence ('EPCG licence' for short) dated 14/1/1998, with obligation to export goods 6 times the CIF value of the capital goods imported. At the relevant time, there were two types of EPCG licences namely 10% basic duty EPCG licence (10% Basic duty + Nil CVD) and zero duty EPCG licence ('Nil' Basic dty + 10% CVD). The petitioner opted for zero duty EPCG licence. Para 6.3 of the Foreign Trade Policy as well as condition No.5 of Notification No.29/97 governing zero duty EPCG licence provided that the minimum CIF value of capital goods to be imported under zero duty EPCG licence should be Rs.20 crores and if the same is not complied, the importer shall be liable to pay full duty with interest.