HINDUSTAN ZINC LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) On July 6, 2012, while taking note of the provisions of Para 9.51 of the Foreign Trade Policy (hereinafter referred to as 'FTP'), the Board of Approval for Export Oriented Unit Scheme, rejected the appeal preferred by the petitioner by arriving at a conclusion that electricity is not a "consumable" item and as such is not entitled for exemption as referred in Para 6.5.1 of the Hand Book Procedure (hereinafter referred to as 'HBP') 2009-14.

(2.) The decision of the Board was communicated to the petitioner by the office of the Regional Joint Director General of Foreign Trade, Jaipur under a communication dated 10-10-2012. Being aggrieved by the communication aforesaid and the decision of the Board of Approval, this petition for writ is preferred. Facts of the Case

(3.) The petitioner, a company incorporated under the Companies Act, 1956, claimed benefit of deemed export, as provided under Para 8.3 of the FTP, on the electricity consumed by its hundred per cent export oriented unit/ Hydro-1. The claim aforesaid was made on the count that the Domestic Tariff Area (hereinafter referred to as 'DTA') Unit of the petitioner is having a captive power plant which supplies electricity to the export oriented unit (100%) that manufactures zinc. The zinc manufactured in the export oriented unit consumes electricity manufacturing process to obtain zinc.