TARA FEED LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner is a public limited company having its office at Ludhiana and factory premises at Jitwal Kalan. The petitioner has installed a refinery for refining of crude edible oil into finished edible oil. The petitioner is also registered under Vegetable Oil Products (Regulation) Order, 1998 with the Directorate of Vanaspati, Vegetable Oils and Fats for manufacturing of refined vegetable oils with annual installed capacity of 23,040 Metric Tonnes. The import and export is governed and controlled by Foreign Trade (Development and Regulation) Act, 1992. The Central Government in terms of provisions of Section 3 of the Act has power to make provisions relating to import and export. The Government has power to prohibit, restrict or regulate the import or export of any goods. The Government under Section 5 of the Act has also power to issue policy to achieve the objectives of the said Act. Sections 3 and 5 of the Act are reproduced as under :

(2.) In terms of the provisions of Foreign Trade Policy import and export of all goods have been classified into three categories, i.e., free, restricted and prohibited. The prohibited goods cannot be imported at all, however, restricted goods can be imported and exported subject to compliance of restriction. Any body on payment of duty, if leviable can import freely importable goods.

(3.) With the intention to promote export, Government has declared different incentive schemes under Customs Act and Foreign Trade Policy. Advance authorization is one of the policies declared under Foreign Trade Policy and duty drawback is under the Customs Act, 1962. As per advance authorization, goods can be imported without payment of duty and as per drawback scheme, refund of duties paid at the time of import is granted to the exporter. Section 75 of the Customs Act, 1962 dealing with drawback is reproduced as under :