SHAKTI LPG LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) P.C. Heard the learned Counsel for the parties. By this Petition, the Petitioner is challenging the order dated 3rd January, 2006 passed by the Chief Commissioner of Customs, rejecting the application for re-export under Section 69(1) of the Customs Act, read with the policy of the Circular dated 14th January, 2003.

(2.) The main contention of Mr. Desai, the learned Senior Counsel on behalf of the Petitioner is that though the Petitioner is selling the goods to the units situated in SEZ area, it would amount to re-export. He contends that Section 69 of the Customs Act should be construed to mean that the export to a place outside India would also include the sale to the units situated under the SEZ area. In that behalf, the learned Counsel for the Petitioner resorted to the Handbook of Procedures, wherein he referred to Chapter 7 which defines SEZ (Special Economic Zones), specially 7.3.1 and 7.10.4 to indicate that even SEZ Units may procure goods required by it without payment of duty from the bonded warehouses in the DTA set up under the policy. The learned Senior Counsel Mr. Desai has contended that the learned Chief Commissioner of Customs has erred in not accepting the argument that the sale to the units situated in the SEZ area should be construed as the export outside India as per Section 69(1) of the Customs Act.

(3.) Mr. Desai, the learned Senior Counsel has further contended that, construing such a sale to be as per Section 69 of the Customs Act the learned Chief Commissioner of Customs ought to have permitted such re-export as per the Circular dated 14th January, 2003.