Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1992: Foreign Trade (Development and Regulation) Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Foreign Trade (Development and Regulation) Act, 1992: FTP 2009-2014 – Chapter 6 and 8 – Claim for refund of TED paid by DTA unit on goods supplied by DTA unit to EOU unit for manufacturing goods cleared for export – Held: If the refund claim is by the EOU, the same needs to be processed by the authorities under the FTP by reckoning the entitlement of DTA supplier specified in Chapter 8 of the FTP concerning the goods supplied to it, being a case of deemed exports – The EOU on its own, however, is not entitled for refund of TED, as the mandate to EOU is to procure or import goods from DTA supplier, without payment of duty in view of the express ab initio exemption provided in terms of para 6.2(b) read with para 6.11(c)(ii) – However, despite such express obligation on the EOU, if the EOU has had imported goods from DTA supplier by paying TED, it can only claim the benefit of refund provided to DTA supplier under para 8.4.2 read with paras 8.3(c) and 8.5 subject to obtaining disclaimer from DTA supplier in that regard and complying with other formalities and requirements – Since the entitlement of exemption and refund of TED flows from the provisions of 1992 Act and FTP framed thereunder by the Central Government, which is an independent dispensation than the one provided in the 1944 Act and the rules framed thereunder, with the avowed purpose of promoting export and earning foreign exchange, it is the obligation of Authority responsible to implement the subject FTP, to deal with refund claim of the concerned entities – For, it is not a case of refund under the 1944 Act or 2002 Rules or 2004 Rules as such, but under the applicable FTP – Central Excise Act, 1944 – s.5A – Central Excise Rules, 2002 – Central Excise Rules, 2004. Foreign Trade (Development and Regulation) Act, 1992: FTP 2009-2014 – The EOU entities, who had procured and imported specified goods from DTA supplier, are entitled to do so without payment of duty [as in para 6.2(b)] having been ab initio exempted from such liability under para 6.11(c)(ii) of the FTP, being deemed exports – Under para 6.11(a) of the FTP, EOU is additionally eligible merely to avail of entitlements of DTA supplier as specified in Chapter 8 of the FTP upon production of a suitable disclaimer from the DTA supplier and subject to compliance of necessary formalities and stipulations – It would not be a case of entitlement of EOU, but only a benefit passed on to EOU for having paid such amount to the DTA supplier, which was otherwise ab initio exempted in terms of para 6.11(c)(ii) of the FTP coupled with the obligation to import the same without payment of duty under para 6.2(b). Words and phrases: Benefit and entitlement – Distinction between – Held: “Benefit”, by its very nature, is an advantage, help or aid, while “entitlement” is right to have something. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2022 INSC 8 |
Petitioner | Sandoz Private Limited |
Respondent | Union Of India & Others |
SCR | [2022] 2 S.C.R. 601 |
Judgement Date | 2022-01-04 |
Case Number | 3558 |
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