Minutes of the meeting of the Grievance Redressal Committee held

Minutes of the meeting of the Grievance Redressal Committee held

on 27.06.2008 at 1500 Hours

Item No: 1 M/s.Hetero International, Mumbai (F.No. 06/108/2007-GRC)

· Prayer in brief : The petitioner’s prayer to the committee is to allow DEPB benefits in respect of five applications which had been rejected by the RLA, Mumbai stating to be time barred.

· Grounds of prayer : The petitioner have submitted that as per para 4.47 of HBP – “The application for obtaining credit shall be filed within a period of six months from the date of exports or within three months from the date of realisation, whichever is later, reckoned from the date of realisation/exports, in respect of shipments for which the claim have been filed”. Policy Circular No. 34 dated 18.05.2004 states that – “Shipping bills with let export order date or bank Realisation Certificates dated prior to 28^{th
January, 2004 shall be covered by the said para of the HBP prior to the
modification vide Public Notice No. 41 dated 28.01.2004”. According to
the petitioner they have submitted all their applications to the RLA,
Mumbai either within 3 months from the date of realisation or within six
months from the date of export. Therefore, they are eligible for DEPB
benefits.}

· GRC decision : The Committee gave a patient hearing to the petitioner and requested Jt. DGFT to examine and dispose off the case in view of condition given in para 2(a) of DGFT Policy Circular No. 34 (RE 2004)/2002-2007 dated 18th May, 2004. The Committee was of the view as the shipping bills presented by the petitioner in the Grievance application meets the condition prescribed in para 2(a) of the said circular, therefore, the fact that he does not meet the condition specified in 2(b) should not be construed as a case to reject petitioner’s request.

Item No.: 2 M/s. Shashi Cables Ltd., Lucknow (F.No. 06/10/2008-GRC)

· Prayer in brief : The petitioner’s prayer to the committee is to waive 2% composition fee imposed by the PRC of the DGFT for granting revalidation of Advance Licence No. 061006216 dated 10.10.2003 for a period of six months.

· Grounds of prayer : The petitioner have submitted that they are aggrieved with the decision of the PRC of the DGFT.

· GRC decision : The Committee gave a patient hearing to the petitioner in which petitioner presented that there was a delay on the part of Jt. DGFT, Kanpur to implement decision of ALC in time and because of that they were forced to again approach ALC for further revalidation. Therefore, Committee directed Jt. DGFT to get detailed report from Jt. DGFT, Kanpur regarding delay in implementation of the decision of ALC.

Item No: 3 M/s. Sopariwala Exports, Mumbai (F.No. 06/24/2004-GRC)

· Prayer in brief : The petitioner’s prayer to the Committee is for the enhancement DEPB rate from the date of their application i.e. July, 2001 filed in DGFT for (1) Handmade Beedis (SION E.91) (2) Tobacco / Sweet Tobacco / Tobacco Paste (SION K-96).

· Grounds of prayer : GRC Committee has already approved their case and instructions were sent to DGFT office vide letter No. 06/26/2004/GRC dated 28.2.2007 for enhancement of DEPB rate.

· GRC decision : The Committee gave a patient hearing to the petitioner. Jt. DGFT pointed out that DEPB rate cannot be enhanced in this case because for agricultural items the enhanced rates are not applicable. Committee directed Jt. DGFT to examine whether enhanced rates are not applicable for all agricultural items or for a few categories. Jt. DGFT was directed to send a report to the Grievance Redressal Committee after examination of the case.

Item No: 4 M/s. Eagle Flask Industries Ltd., Pune (F. No. 06/29/2008-GRC)

· Prayer in brief : The petitioner’s prayer to the Committee is for the waiver of average export obligation against EPCG Licence No. 3130000086 dated 11.12.2000 as a special case.

· Grounds of prayer : They have already completed exports which is more than 5 times the CIF value of the Licence granted and their unit has already been declared as a sick unit by BIFR on 30.3.2006. Therefore, there was no question of any production whatsoever and it was not possible for them to maintain an annual average.

· GRC decision : The Committee gave a patient hearing to the petitioner. Committee recommended waiver of the amount in view of the fact that M/s. Eagle Flask Industries has been declared as a sick unit and the amount for the waiver of average export obligation against EPCG licence is very small.

Item No: 5 M/s. Loyal Textile Mills Ltd., Kovilpatti (F. No. 06/113/2007-GRC)

· Prayer in brief : The petitioner has requested the Committee for relaxation of pre-import condition for raw cotton against Advance Licences issued by JDGFT, Madurai.

· Grounds of prayer : LT was granted 9 Advance Licences for import of Raw Cotton covering 1018 tonnes during the years 1999-2001. But due to quality problems during pre-shipment inspection shippers could not affect shipments as the raw cotton was also under OGL and to avoid default in export commitments alternative arrangements were, made to import the item under this channel. Total quantity of raw cotton imported under OGL was 10,854 tonnes whereas quantity covered by Advance Licences was 1081 tonnes only. Thus, they have not only fulfilled the export obligation, but pre-export condition also as substantial quantity of raw cotton was imported under OGL.

· GRC decision : The Committee gave a patient hearing to the petitioner. Committee gave the direction to Ms. Loyal Textile Mills Ltd. that they may furnish details of stock of required imported Raw Cotton availability at the time when they exported irrespective of the fact that whether it was imported under Advance Licence or under Open General Licence. He may furnish the information to the concerned Joint DGFT within a weeks’ time who after examination of the information will send a report to GRC. Committee was also of the view that if the required quantity of stock of imported raw cotton was available at the time of the export then relaxation of pre-import condition for raw cotton against advance licence may be issued by DGFT.

Item No: 6 M/s. Shree Laxmi Trading corporation Export (India), Pune (F.No. 06/27/2008-GRC)

· Prayer in brief : The petitioner’s prayer to the committee is for permission for export of Processed Pulses, Chick Peas against Advance Licences (No. 031210077 and 0310243906) dated 5th Dec. 2003 and 24th Dec., 2003 respectively. The committee should also remove the composition fee imposed on them which will not be applicable in ban period.

· Grounds of prayer : Grievance Committee in its earlier decision has agreed to extend export obligation for a period of 3 months with composition fee after the ban on export of pulses is lifted. The petitioner is of the view that condition imposed in their Advance Licence is not applicable under the notification No. 15(RE-2006)/2004-2009, New Delhi, the 27th June, 2006 wherein ban in export of pulses was imposed as their imports were prior to this notification. Composition Fee imposed on them by Committee will also not be applicable in ban period.

· GRC decision : The committee gave a patient hearing to the petitioner. Committee has observed that due to the ban of export of pulses issued vide notification No. 15(RE-2006)/2004-2009 New Delhi 26 June 2006 M/s. Shree Laxmi Trading Corporation Exports (India) was not able to fulfil the export obligation. The ban on export of pulses has not been revoked till today also. Therefore, keeping in view these circumstances, Food Ministry may be approached to allow the company for export of processed pulses, chick peas against Advance Licences issued to them to fulfil their export obligation within a period of 3 months as a special case. The Committee also directed DGFT, Mumbai to redeem their licences.

Item No: 7 M/s. Deebro Textile Industries Ltd., Mumbai (F. No. 06/13/2008-GRC)

· Prayer in brief : The petitioner’s prayer to the Committee is for issuance of DFCE (TP No.0310426716 dated 13.4.2007) for Rs. 12,67,754) with Mumbai DGFT.

· Grounds of prayer : Exports of diamonds cannot be disallowed since the same has been disallowed only from 1.4.2005 but Notification No. 48/(RE-2005/2004-2009) was issued only on 20th February, 2006.

· GRC decision : The Committee deferred consideration of the case to its next meeting as the petitioner did not appear.

Item No. 8 M/s. Johnson Matthey Chemicals (I) Ltd., Distt. Raigad (F. No. 06/16/2008-GRC)

· Prayer in brief : The petitioner’s request to the Committee is for Re-instatement of EPCG Licence and repayment of duty paid under protest.

· Grounds of prayer : Petitioner was of the view that the FRP Pipes and Fittings were imported by them which are capital goods and not the raw material as decided by Grievance Committee in its meeting. Grievance Committee in its meeting held on 19.9.2007 under the chairmanship of DG was of the view that as import item is raw material and not a capital good and thus rejected the request.

· GRC decision : The Committee gave a patient hearing to the petitioner. The Committee directed Jt. DGFT for relooking into the case after going through the second technical report and to find out whether the material imported by the company was capital good or not.

Item No. 9 M/s. The supreme Industries., Mumbai (F. No. 06/17/2008-GRC)

· Prayer in brief : Petitioner has requested the Committee for Extension in Export Obligation period against Advance Licence No. 0310123741 dated 8.2.2002.

· Grounds of prayer : They could not fulfil the export obligation due to adverse market condition and devastating rainfall. Appreciation in rupee vis-a-vis US dollar has hit their export very hard and their margin had shrunk. Non extension of EOP could put them to further loss. The export obligation pro-rata to actual imports has been fulfilled and the request is made only for the purpose of regularisation and no further imports are to be made against the licence.

· GRC decision : The committee gave a patient hearing to the petitioner. The Committee noted that the firm has fulfilled less than 25% of EO within the valid EOP. Therefore, Committee did not agree to the request of the firm for extension in EOP against advance licence No. 0310123741 dated 8.2.2002.

Item No: 10 M/s. Sterlite Technologies Ltd., Mumbai (F. No. 06/21/2008-GRC)

· Prayer in brief : Petitioner has requested for extension of export obligation period of Advance Licences issued during 2000-01 and clubbing them with advance licence issued in 2006.

· Grounds of prayer : Since all Advance Licence were valid till 2003 they had taken all best efforts to complete export obligations in spite of low trends of international market for optical fibre cable. They have been continuously exporting the goods and also pursuing for fulfilment of export obligation and closure of these cases, therefore, there is no gap of period.

· GRC decision : The committee gave a patient hearing to the petitioner. The Committee decided to reject the request of the firm as all the advance licences with which Advance Licence No. 310364399 dt. 24.1.2006 is proposed to be clubbed were issued way back in the year 2000 and their validity and EOP has long expired. Further the Committee also did not accede to the request for extension in EOP against 10 licences as the date of application for extension of EO period is after more than 5 years from the date of expiry of EOP against these licences.”

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