BHARAT HEAVY ELECTRICALS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ application, the petitioner, a public sector undertaking of the Government of India, has challenged the validity and legality of the decisions dated 15 March, 2011 and 9 September, 2011 of the respondent No. 5, to the extent that the respondent No. 5 has held that cement and steel are not eligible for deemed export benefits, except in respect of supplies provided under Paragraph 8.2(d) of the Foreign Trade Policy 2009-14. The petitioner has also challenged notices dated 20 July, 2012/14 July, 2012 issued on behalf of the respondent No. 3 by the respondent No. 4, whereby the petitioner has been informed that no deemed export benefit was available for supply of cement and steel as inputs in mega power projects, in which the petitioner effected supplies, and called upon to pay back the deemed export benefit received in the form of refund of Terminal Excise Duty paid by the petitioner on steel and cement supplied, along with 15% interest, in default whereof, the petitioner has been threatened with action under the Foreign Trade (Development and Regulation) Act, 1992.

(2.) On 13th of July 2007, Damodar Valley Corporation issued a letter of intent to the petitioner for supply of plant and equipment including mandatory spares for the Thermal Power Project at Koderma. Similar letter of intent was issued to the petitioner on 14th of August, 2007 for supply of plant and equipment, including mandatory spares, for setting up Durgapur Thermal Power Station.

(3.) On 11 August, 2001, agreements were entered into by and between ONGC Tripura Company Limited and the petitioner for supply of plant and equipment, civil construction materials, maintenance tools, tackles and commissioning spares for design and engineering, manufacturing, fabrication and assembly of a gas based combined cycle power plant at Udaipur in Tripura.