RAJEEV AGARWAL Vs. DIRECTORATE OF REVENUE

JUDGEMENT

(1.) APPLICANT no. 1 is the Director of the company known as Select Impex Pvt. Ltd. According to the applicants, applicant no. 1 resigned in February, 1999 and thereafter applicant no. 2 was appointed as a Director in the said Company. The business of the company amongst others, is exports of various goods. During the financial year 1997-98, the Government of India formulated the export-import policy 1997-2002 under the scheme known as Duty Entitlement Passbook Scheme. The scheme was intended to provide an incentive on the F. O. R. value of goods exported from India in respect of Quartz Analog Watches. The entitlement was 21% of the F. O. R. value of the goods without any ceiling on the value. This entitlement is given by way of credit in the passbook issued by the Regional Licensing Authority.

(2.) THE applicants claim that they have exported 1957 pieces of Quartz Analog Watches fitted with a straps made of 22 carat, at a declared value of 22 crores approximately during January 99-February 99 from Mumbai Port to M/s. Kismet Inc. Hongkong and M/s. Red Star Trading Company, Hongkong under the Duty Exemption Passbook Scheme of the Export and Import Policy 1997-2002.

(3.) I have heard Mr. Vakil, learned Counsel appearing for the applicants and Mr. Sethna, learned Counsel for the respondents. Today in this Court an affidavit is filed by Shri P. V. George, Assistant Director, Directorate of revenue intelligence, Mumbai opposing the grant of bail.