C/SCA/8596/2007 CAV JUDGMENT

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/SPECIAL CIVIL APPLICATION NO. 8596 of 2007

FOR APPROVAL AND SIGNATURE:

HONOURABLE THE ACTING CHIEF JUSTICE ANANT S. DAVE

and

HONOURABLE MR.JUSTICE BIREN VAISHNAV

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1 Whether Reporters of Local Papers may be allowed to

see the judgment ?

2 To be referred to the Reporter or not ?

3 Whether their Lordships wish to see the fair copy of the

judgment ?

4 Whether this case involves a substantial question of law

as to the interpretation of the Constitution of India or any

order made thereunder ?

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ANDAGRO SERVICES PVT.LTD. & 1 other(s)

Versus

THE UNION OF INDIA THR' SECRETARY, & 4 other(s)

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Appearance:

MR HARDIK P MODH(5344) for the Petitioner(s) No. 1,2

MR DEVANG VYAS(2794) for the Respondent(s) No. 1,5

MR NIRZAR S DESAI(2117) for the Respondent(s) No. 3,4

MS MAITHILI D MEHTA(3206) for the Respondent(s) No. 1

RULE SERVED(64) for the Respondent(s) No. 2

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CORAM: HONOURABLE THE ACTING CHIEF JUSTICE ANANT S. DAVE

and

HONOURABLE MR.JUSTICE BIREN VAISHNAV

Date : 05/08/2019

CAV JUDGMENT

(PER : HONOURABLE MR.JUSTICE BIREN VAISHNAV)

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C/SCA/8596/2007 CAV JUDGMENT

1

This petition under Article 226 of the Constitution of

India challenges the order dated 09.01.2007 passed by

Assistant Commissioner (Gr-VII) Customs House, Kandla

whereby a demand of duty of Rs.1,00,38,321/- (One Crore

Thirty Thousand Three Hundred and Twenty One Only) made

under the show-cause notice dated 30.08.2006 is confirmed.

The petitioner has been denied the benefit of Duty Free Credit

Entitlement (‘DFCE’ for short) in respect of the two Bills of

Entry, under notification No. 53/2003 dated 01.04.2003. Also

under challenge is the Circular No. 10/2004-Cus dated 30^th

January 2004, by virtue of which the Department of Revenue

issued a clarification regarding restrictions on import of

agriculture and dairy products, occurring in Clause (ii)(c) of

Notification of 01.04.2003. The clarification issued suggested

that the term “agriculture and dairy products” shall mean that

import of all types of products derived from agriculture/dairy

origin including crude edible oil shall not be permitted.

According to the petitioner the scope of the term “agriculture

and dairy products” cannot be widened or enlarged by a

circular, so as to add something in the Notification providing

for exemption.

2

The challenge to the order and the clarificatory circular

arises in the background of the following facts:

2.1

The petitioner is a government recognized Two Star

Export House and a trading company engaged in the export of

rice, sesame seeds, soyabean meal extract etc. Under the

Exim Policy of 2002-2007 which provides for exempting

goods, when imported into India under a Duty Free Credit

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C/SCA/8596/2007 CAV JUDGMENT

Entitlement Certificate, the petitioner has been granted the

“DFCE Certificate” for import of goods which have a nexus

with Product Group exported under the category “67 Food

Products”. Under this certificate of Duty Free Entitlement, the

petitioner imported Crude Degummed Soyabean Oil

(“CDSO”). Having imported Crude Degummed Sobayean Oil

vide the two Bills of Entry, the petitioner claimed duty

exemption based on such certificate. The exemption claimed

was, in accordance with para 3.7.2.1 (vi) of the Exim Policy as

the petitione