- (1.) By the Court. The petitioner-company is carrying on business of manufacture and export of steel castings, forged assembly parts and other products including forgings to various countries in Europe and USA and has been awarded One Star Export House status by the Director General of Foreign Trade (DGFT), Government of India, New Delhi. The petitioner manufactures/forges a stainless steel product called 'raised hatch' / 'hatch' used in barges for transporting goods over water.
(2.) The Foreign Trade (Development and Regulations) Act, 1992 (the Act) provides for regulation and announcement of export and import policy of the Central Government. Para 2.4 of the Foreign Trade Policy for 2004-09, made under Section 5 of the Act and Para 1.1 of the Hand Book of the procedure of the DGFT Policy provides for Duty Entitlement Pass Book (DEPB) scheme for shipment of various classified goods outside the country. The DEPB can be used for setting off the import duty and can also be traded. All the goods including the 'raised hatch' / 'hatch', exported by the petitioner fall under Item No. 530B of Product Group; Engineering Products entitled to DEPB to the extent of 8% of the FOB value of the goods exported upto the maximum of Rs. 400/- per kg. as provided in the schedule of DEPB.
(3.) Para 2.3 of Chapter II of the Foreign Trade Policy 2004-09,. provide that any interpretation of the policy about the classification of any goods of any item or schedule or DEPB rate shall be referred to the DGFT, whose decision shall be final. Para 2.3 is quoted as below : "2.3. Interpretation of Policy-If any question or doubt arises in respect of the interpretation of any provision contained in this Policy, or regarding the classification of any item in the ITC (HS) or Handbook (Vol. 1) or Handbook (Vol. 2), or Schedule of DEPB Rate the said question or doubt shall be referred to the Director General of Foreign Trade whose decision thereon shall be final and binding. If any question or doubt arises whether a licence/certificate/permission has been issued in accordance with this Policy or if any question or doubt arises touching upon the scope and content of such documents, the same shall be referred to the Director General of Foreign Trade, whose decision thereon shall be final and binding.";