KANHAIYA EXPORTS Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This writ petition is made by the petitioner company and one of its Directors by saying that the Circular bearing No. 23/99 dated 11th May, 1999 or Paragraph 4 of the said Circular being annexure "DD" to the petition be quashed and/or set aside. It is also prayed thereunder that DEPB (Duty Exemption Pass Book) Licences being No. 0210005970/3/06/00 being annexure 'C' to the petition be returned to the petitioner and to allow benefit of the scheme to the petitioner or its transferees. The similar benefit of DEPB Licences also claimed in respect of Nos. 121000490/3/06/00, 0210005508/3/06/00, 0210005514, 1210005642/3/06/00 being annexure 'F collectively to the petition.

(2.) According to the petitioner company on 30th June, 1999 they have exported certain goods known as "Steel Welding Electrodes". Consignments were provisionally assessed and "let export" orders were passed. The exports of consignments were made under Duty Exemption Pass Book (DEPB) scheme under which the petitioners are entitled to duty credit of 18 per cent of the Free on Board (FOB) value of export specially to the limitation of 50 per cent of the Present Market Value (PMV) of the goods in question. The export of the goods is made under AR 4 form issued by the Excise Authorities under Customs Notification No. 69/97. The petitioner declared FOB price of US Dollar $ 953694 and PMV at Rs. 4,40,70,280/-. After making the enquiry, on 4th August, 1999 Shipping Bills were finally accepted by the Customs Authority on the basis of declared PMV. The petitioners obtained copies of Shipping Bills and applied to the Licencing Authority i.e. Director General of Foreign Trade (DGFT) under Ministry of Commerce and on 10th September, 1999, Licencing Authority issued DEPB Licences.

(3.) On 30th November, 1999 the Customs Authority issued a Circular for verification of DEPB in view of the few instances of forged DEPB which came into circulation. Under the circular DEPB was required to be submitted for verification for the purpose of ascertaining the authenticity/genuineness of the Shipping documents and DEPB only. Under the circular within 48 hours after verification, DEPB licences were required to be returned to the presenter. The petitioner filed the DEPB licences to the Customs Authority for the limited purpose of verification in terms of the Circular No. 14 of 1999-Cus., dated 15th March, 1999. The Customs Authorities accepted the same but did not return the petitioner after verification without showing any ground and finally on 18th March, 2000 the respondent refused to return the DEPB on the ground of Circular No. 23/99-Cus., dated 11th May, 1999 alleging the Commissioner of Customs has decided to cause enquiry and proceeded to deny the benefit of Duty Free Import against the DEPB.