JUDGMENT

Kapadia, J. — In this batch of matters, the central question which we are called upon to decide is regarding the validity of Policy Circular dated 30.8.05 and Notification No.24 dated 31.8.05 which has the effect of amending para 6.8(a) and para 6.8(h) of the Foreign Trade Policy 2004-2009.

2. This judgment is confined to Domestic Tariff Area sales (DTA sales) by 100% Export Oriented Unit (EOU).

3. Leave granted in special leave petitions filed by Union of India against various EOUs.

4. The basic issue which we need to decide in this batch of cases is: whether DTA sales by 100% EOUs form an integral part of EOU Scheme?

5. For the sake of convenience we reproduce hereinbelow the facts as reproduced in the case of Union of India & others v. M/s. Abhishek Exports [Civil Appeal No...... of 2007 arising out of S.L.P. (C) No. ........ (CC 9879 of 2006)].

6. The concept of EOU was introduced in 1980 in the EXIM Policy. The EOU Scheme was framed in order to boost the Indian exports. Under the said Scheme, EOU could be located at any place. In 1992, statutory recognition was given to EXIM Policy vide Section 5 of the Foreign Trade (Development and Regulation) Act, 1992. In 1991, EO