Case Law Details
Rika Global Impex Limited Vs Union of India (Bombay High Court)
Conclusion: Custom Authority had allowed the clearance of Pigeon Peas as there was valid registration of Advance Payment Certificate and registration certificate was binding on the respondents until the completion of the import quota mentioned therein and considering that assessee had imported the import item before 31.03.2021, assessee’s import was required to be declared as valid import under the FTP.
Held: Assessee-company was engaged in the business of import and export of agricultural commodities. It was a regular importer and exporter of agricultural produce including Pigeon Peas (Toor) from Sudan, Myanmar, Tanzania and Mozambique. Assessee had been allotted import / export code and accorded status of ‘Star Trading House’ by the DGFT. In the ordinary course of business assessee had entered into contract with the foreign supplier for purchase of Pigeon Peas; the contract was mutually amended from time to time vide 8 addendums whereby some terms of the contract were amended and shipment period was extended. Assessee’s contract for import of Pigeon Peas was under the provisions of the FTP, validity of which now stood extended till 31.03.2021. Assessee being covered by the conditions stated in the trade notice dated 31.08.2017 applied for registration of contract and was accordingly issued an Advance Payment Certificate i.e. registration certificate by the DGFT on the basis of advance payment made to its supplier. DGFT issued 5 RCs to assessee against the trade notice dated 31.08.2017.Assessee imported Pigeon Peas against 4 RCs to the extent of 11000 MTs by 2018. Import against the 5th RC in respect of balance 11000 MTs was to be completed between 2018 to 2020. In view assessee’s contractual obligations shipment was to reach India between February and March 2020 but due to Covid – 19 pandemic and the resultant lockdown enforced by many countries there was delay and the shipment of Pigeon Peas arrived in the month of September 2020. Assessee’s shipment was not cleared for home consumption as a result of which assessee incurred demurrage / detention charges due to delay in clearance. Assessee therefore addressed letter to the DGFT seeking clarification as to whether the RC dated 06.09.2017 issued to assessee was valid for import of Pigeon Peas in the year 2020 and also sought clarification from the DGFT with respect to validity of its RC dated 06.09.2017. It was held that the RC was binding on the respondents until the completion of the import quota mentioned therein and considering that assessee had imported the import item before 31.03.2021, assessee’s import was required to be declared as valid import under the FTP. Assessee’s application for import was specifically filed under notification dated 05.08.2017; only pre-condition prescribed therein being registration of contract if advance payment was made prior to 05.08.2017; assessee qualified such pre-condition considering that its contract was registered on 26.05.2017 in respect of the import item and advance payment already made; the subsequent addendums did not vary the principal contract save and except the date of shipment and the country of origin. On perusal of the notification dated 05.08.2017 it could not be said that it imposed restriction to complete the import of goods only during the fiscal year 2017-18; though there was a reference to the fiscal year appearing in condition No.2 of the said notification as regards the quota of 2 lakh MT per annum; this reference was merely for the purposes of procedure to be notified for such import in terms of para 2.08 of the FTP; however the subsequent trade notice dated 31.08.2017 which directly concerns the assessee’s case in hand did not mention its applicability to the fiscal year 2017-2018 and categorically specifies its applicability to the contract under the FTP. Thus, the clearance of 2650 MT of Pigeon Peas for home consumption was allowable to assessee forthwith; Considering the lapse of time from the date of fling of the petition i.e. November 2020 till the present order was passed, Respondents shall allow clearance of the balance 8350 MT of Pigeon Peas if imported by assessee for home consumption under the RC File upto a period of 6 weeks from the date of passing of the present order.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
Heard Mr. Vineet Naik, learned senior advocate for the petitioner; Mr. Pradeep S. Jetly, learned senior advocate for respondent Nos.1 to 3; and Mr. Rui Rodrigues, learned advocate for respondent Nos.4 to 6.
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