Delhi High Court
Vedanta Limited vs Union Of India And Ors on 30 August, 2018
#55
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: 30.08.2018
W.P.(C) 12220/2016
VEDANTA LIMITED ..... Petitioner
versus
UNION OF INDIA AND ORS ..... Respondents
Advocates who appeared in this case:
For the Petitioner : Mr. Manish Garg, Advocate
For the Respondents :Mr. Rajat Gava, Advocate for Mr. Sanjeev Narula, CGSC for UOI
CORAM:
HON'BLE MR. JUSTICE SIDDHARTH MRIDUL
JUDGMENT
SIDDHARTH MRIDUL, J (ORAL)
1. The writ petition has been received on transfer.
2. With the consent of learned counsel appearing on behalf of the parties,
the same is taken up for final hearing and disposed of with the
following order.
3. It is the case of the petitioner that, owing to global downturn and
recession, exports from India were substantially hit in the financial
year 2012-13.
4. In order to incentivize and achieve incremental exports, the Central
Government introduced a scheme called the Incremental Exports
Incentivization Scheme (hereinafter referred to as the 'subject
scheme') vide notification No.27(RE-12)/2009-2014 dated
28.12.2012, by inserting paragraph 3.14.4 in Foreign Trade Policy
2009-14.
5. As is evident from the nomenclature of the subject scheme, the
objective of the same was to incentivize the incremental exports.
6. The petitioner, as an IEC holder was entitled to the benefits of the
subject scheme for the year 2013-14.
7. However, subsequent thereto, vide notification dated 23.09.2014, a
clarification regarding entitlement under the subject scheme was
issued by the Director General of Foreign Trade, to the effect that, the
subject scheme for the year 2013-14, would be limited to a scrip of a
value not exceeding Rs.1 crore per IEC, with retrospective effect.
8. It is an admitted position that, a Division Bench of this Court vide
decision dated 12.04.2018, in W.P.(C)5082/2017, titled as M/s
Welldone Exim Pvt. Ltd. (Formerly known as M/S G.D. Mangalam
Exim Pvt. Ltd.) vs. Directorate General of Foreign Trade & Anr.,
held in paragraph 12 thereof, as follows:
"12. In view of the aforesaid discussion, the
present writ petitions are allowed with a direction
to the Regional Authority to examine the case of
the petitioner for grant of export incentive and pass
a reasoned and speaking order. The application
would not be rejected on the ground that total
amount being claimed exceeded Rs.1 crore during
the financial year 2013-14. However, the greater
scrutiny in terms of clause (ii) of paragraph 3.15.5
(c) read with paragraph 3.8.3 (e) (ii) would be
undertaken. The aforesaid exercise would be
completed within 10 weeks from the date of copy
of this order is served on the respondent. There
would be no order as to costs."
9. Learned counsel appearing on behalf of the Union of India concedes
that, the prayers sought in the present petition are covered on all fours
by the aforesaid decision in Welldone Exim (supra), and the same will
consequently have to be allowed in terms thereof.
10.Having heard learned counsel appearing on behalf of the parties and
perused the petition paper book, and in terms of the decision in
Welldone Exim (supra); the impugned communication dated
23.09.2016, whereby the respondent/Directorate General of Foreign
Trade have restricted the entitlement to Rs.95,00,000/- only, as
against the petitioner's claim to the tune of Rs.33,68,02,996.70/- is
held to be without jurisdiction, arbitrary, illegal and capricious and
contrary to the provisions of the Policy and the Handbook of
Procedures. The same is accordingly set aside and quashed.
11.The writ petition is accordingly allowed, with a direction to the
Regional Authority to examine the case of the petitioner for grant of
export incentive and pass a reasoned and speaking order in this behalf.
The petitioner's application will, however, be not rejected on the
ground that, the total amount of being claimed to the tune of
Rs.33,68,02,996.70/- by the petitioner exceeds Rs.1 crore during the
financial year 2013-14.
12.It is further directed that, requisite scrutiny in terms of clause (ii) of
paragraph 3.14.5 (c) of the notification dated 25.09.2013, read with
paragraph 3.8.3 (e)(ii) of the Handbook of Procedure, Volume I for
Incremental Exports Incentivisation Scheme would be undertaken.
13.The official respondent is directed to complete this exercise within a
period of ten weeks from today, under intimation to the petitioner.
14.With the above directions, the writ petition is disposed of accordingly.
No order as to costs.
SIDDHARTH MRIDUL
(JUDGE)
AUGUST 30, 2018
as
