JAIN GRANI MARMO PRIVATE LIMITED Vs. THE UNION OF INDIA AND ORS.
LAWS(RAJ)-2015-8-18
HIGH COURT OF RAJASTHAN
Decided on August 05,2015

Jain Grani Marmo Private Limited Appellant
VERSUS
The Union of India and Ors. Respondents

JUDGEMENT

Jaishree Thakur, J. - (1.) THE present writ petition has been filed seeking the following reliefs: - - "(1) The impugned decision dated 18.9.2014 taken by the Board of Approval in its Third Meeting (Annexure 11) may be modified as permitted under para 6.8(d) & (e) of the Foreign Trade Policy. (2) The decision dated 23.11.2012 (Annexure 3) taken by the Board of Approval in its meeting, being applied to the Petitioner may be modified as permitted under para 6.8(d) & (e) of the Foreign Trade Policy. (3) Any other order or direction which this Hon'ble Court deems just and proper may kindly be passed."
(2.) THE petitioner -Company was established for the purpose of setting up an industrial unit for manufacture of marble slabs, tiles and dressed marble blocks at Udaipur. Being an indigenous unit, it decided to switch over as an Export Oriented Unit(for short 'EOU') to derive benefits of the policies of Government of India, therefore, it applied for obtaining letter of permission and the same was granted to it. In a bid to regulate foreign trade and promotion of exports, the Parliament enacted the Foreign Trade (Development and Regulation) Act, 1992 (for short 'the Act of 1992'). In exercise of powers conferred under Sections 3 and 5 of the Act of 1992, the Government of India has been framing the export and import policies from time to time to encourage entrepreneurs to boost their exports to enable the Government of India to earn foreign exchange. The Foreign Trade Policy, 2009 contains general provisions regarding imports and exports while providing for incentives or benefits. Chapter 6 deals with policy regarding Export Oriented Units (EOU for short). Para 6.8 of the policy provides for norms of sale of finished goods/rejects/wastes/scrap/remnants and by -products in domestic tariff area. Paras 6.8(d) and (e) of the policy are reproduced hereunder: - - "6.8(d) - "Unless specifically prohibited in LOP, rejects within an overall limit of 50% may be sold in DTA, on payment of duties as applicable to sale under sub -para 6.8(a) on prior intimation to Customs authorities. Such sale of rejects upto 5% of FOB value of exports shall not be subject to achievement of NFE. 6.8(e) Scrap/waste/remnants arising out of production process or in connection therewith may be sold in DTA, as per SION notified under Duty Exemption Scheme, on payment of concessional duties as applicable, within overall ceiling of 50% of FOB value of exports. Such sales of scrap/waste/remnants shall not be subject to achievement of positive NFE. In respect of items not covered by norms, DC may fix ad hoc norms for a period of six months and within this period, norms should be fixed by Norms Committee. Ad hoc norms will continue till such time norms are fixed by Norms Committee. Sale of waste/scrap/remnants by units not entitled to DTA sale, or sales beyond DTA sale entitlement shall be on payment of full duties. Scraps/waste/remnants may also be exported."
(3.) IT is contended by the petitioner that the Development Commissioner had initially fixed ad hoc norms for wastage in production from Imported Blocks to the extent of 8.92% and wastage to the extent of 27.56% from indigenous blocks. A contention is also raised that the petitioner further requested to grant approval to dispose of rejects/remnants/export surplus to the extent of 7.5%. Another representation was sent seeking permission to dispose of rejects/remnants since the petitioner was facing acute shortage of space and financial constraints. The respondent thereafter informed the petitioner that a decision had been taken by the Board of Approval for Export Oriented Units for giving permission for disposal of rejects/waste upto 2% of input quality. Another detailed representation was moved against grant of only permission for disposal of only 2% input quality and the same came to be rejected on 18.9.2014 and was communicated to the petitioner on 23.9.2014. Aggrieved against this action of the respondents and came to file the present writ petition.;


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