Ganpati Hosiery Mills Vs Principal Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that recovery of ineligible Focus Market Scrips under section 28AAA of the Customs Act cannot be sustained without cancellation of the instrument by DGFT. Accordingly, order held as without jurisdiction.
Facts- The appellant is engaged in the manufacture and export of Ready Made Garments. An investigation was initiated by the Commissioner (Export) on the alleged misuse of the benefits of the FMS and other licenses issued under Chapter 3 of the Foreign Trade Policy 2009-14.
Accordingly, a show cause notice was issued inter alia proposing to demand ineligible benefit availed under the FMS equivalent to Rs. 1,57,55,340/- u/s. 28AAA of the Customs Act with interest. It also proposed to impose penalty Rs. 75 lakhs u/s. 114AA of the Customs Act on the appellant. Vide the adjudicating order, the demand was confirmed. Accordingly, being aggrieved, the present appeal is filed.
Conclusion- Delhi High Court in the case of M/s. Amit Exports has held that it would be the decision of the DGFT on all matters pertaining to interpretation of policy, provisions in the handbook of procedures and so it would be impermissible for the customs authority to deprive a holder of the instrument the benefits that can be claimed, absent any adjudication of declaration of invalidity by the DGFT.
