PRADIP POLYFILS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) WHETHER the petitioners are entitled to avail the benefit of duty entitlement pass book Scheme on export of Polypropylene filter plates and accessories is the question raised in this petition. The Customs authorities have held that the benefit of the Scheme is available to the goods which fall under Chap. 39 I. T. C. (HS) classification and since the polypropylene filter plates and accessories do not fall under Chap 39, the benefit of the Scheme cannot be granted to the petitioners.

(2.) DUTY Entitlement Pass Book ('d. E. P. B. ' for short) is an export incentive Scheme contained in Chap. 7 of the Import-Export Policy, 1992-1997. Under the said D. E. P. B. Scheme, the Government granted certain percentage of credit on the F. O. B. value of exports made by an exporter as per the Schedule of rates published by the Government. The said schedule is called D. E. P. B schedule. The said schedule prescribes the rate granted for various goods under various heads. For availing the benefit under the d. E. P. B. Scheme, D. E. P. B. licence and a pass book is issued by the Director general of Foreign Trade ('d. G. F. T. ' for short ). D. E. P. B. credit which the exporter is entitled to is entered in the said pass book by the D. G. E. T. based on the rates indicated in the D. E. P. B. Schedule, subject to verification of the documents. D. E. P. B. credit can be utilised for payment of customs duty on goods which are imported into India. D. E. P. B. licence with the credit is also freely transferable.

(3.) DURING the period from 31/07/1998 to 24/06/1999 the petitioners had exported filter plates and accessories made of Polypropylene vide various shipping bills under D. E. P. B. 'scheme through the Bombay customs at Bombay, On the basis of application, two D. E. P. B. licences were issued by the D. G. F. T. , Surat In respect of the aforesaid exports effected by the petitioners. On 25/10/1999 the petitioners submitted the said d. E. P. B. licences to the Customs authorities for verification. By a letter dated 2/12/1999, the Customs authorities at Bombay rejected the claim of credit of duty on the ground that the goods exported did not fall under Chap. 39 of the I. T. C. (HS) classification of export-import items which is a prerequisite for claiming of credit under serial No. 14 of public notice no. 6 dated 15. 4. 1998.