SUKHI INDIA PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Both the appeals involve identical question of fact and law. Moreover both the writ petitions were disposed of by a common judgment and order under appeal. Hence, we propose to dispose of both the appeals by this common judgment.

(2.) The appellants, in both the cases were carrying on business of manufacturing plastic items in Falta Export Processing Zone. They used to import plastic granules from abroad and reprocess the same for the purpose of export. They were carrying on their business under an agreement with the Union of India by which they were not liable to pay any Customs Duty for such import on their export of the reprocessed goods to abroad. This facility was extended by Union of India as and by way of incentive so that foreign exchange could be earned and brought within the country by the exporting the reprocessed goods.

(3.) Under the agreement, the appellants were also entitled to sell a part of the reprocessed goods within the country upon payment of inter alia , appropriate duty commonly known as countervailing duty. This version of