A V INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition is challenging the letter dated 13/16th september, 1993 at Exhibit 'h'; whereby it was clarified that as per the sensitive list at Sr. No. 2 Import of Rubber Chemicals CDF value had been restricted upto 7% of FOB value of Exports. Accordingly, value of the licence held by the petitioner may be treated as restricted to 7% of FOB value. The petitioner is also challenging the show cause notice dated 18th October, 1993 at Exhibit 'g'; whereby the petitioners were called upon to show cause as to why the demand set up against them for short levy to the extent of 13,46,096/- should not be confirmed and why action for recovery thereof should not be initiated under the provisions of the Customs Act, 1962. Factual Matrix :

(2.) Factual matrix giving rise to the present petition in nutshell appears to be as under :

(3.) The petitioner is fully export oriented unit. It manufactures various types of automobile rubber parts, which are fully exported. The petitioner, as per the import Policy for past several years, has been recognised as eligible exporters. The petitioner was given advance licences under the scheme popularly known as the 'deec scheme'; allowing import of required raw materials for being used in the final product meant for export in toto which entitled the petitioner to claim benefit of clearing raw material totally duty free.