Conditions rendering Advance Authorisation Scheme Nugatory are Unsustainable

Messrs Maxim Tube Company Pvt Ltd. Vs Union of India (Gujarat High Court) CONCLUSION – Condition that renders the very scheme of advance authorization nugatory, does not have any nexus to the objective of the advance authorization i.e. to boost export, is unsustainable in law. FACTS – Para 4.14 of the FTP was amended vide notification no. 33/2015-2020 dated 13th October, 2017. The amended para 4.14 provides that imports under advance authorization are exempted from integrated tax and compensation cess however such import shall be subject to ‘pre-import condition’. DRI is of the view th...