Case Law Details
Rajesh Gupta & Ors. Vs DGFT (Delhi High Court)
Introduction: The Delhi High Court recently addressed a complex matter in the case of Rajesh Gupta & Ors. vs DGFT (Directorate General of Foreign Trade). The petitioners sought permission to purchase additional raw material from the open market for the manufacturing and export of copper wire, citing challenges due to the COVID-19 pandemic. The court, in its detailed order, delved into the nuances of duty-free imports, export obligation periods, and the rejection of the request based on the Foreign Trade Policy.
Detailed Analysis: The petitioners, facing difficulties in completing their export obligations amid the COVID-19 pandemic, approached the Delhi High Court seeking relief. In an earlier order dated 23.03.2021, the court had directed the petitioners to make a representation before the DGFT (Directorate General of Foreign Trade) to address their concerns.
Despite the representation made by the petitioners on 07.04.2021 and 12.04.2021, the DGFT did not pass any orders. Subsequently, the petitioners filed a writ petition with multiple prayers, including an extension of the Export Obligation Period (EOP) and permission to fill up the shortage of raw material (copper) by purchasing it from the open market.
The DGFT, in its order dated 23.06.2021, disposed of the representations. Notably, the court observed that the request to fill up the shortage of raw material from the open market was rejected, citing explicit provisions in Para 4.03 of the Foreign Trade Policy 2015-20. According to the policy, an Advance Authorization is issued to allow duty-free import of inputs physically incorporated in the export product.
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