JUDGEMENT

This Writ Appeal is directed against order passed by the learned Single Judge in Writ Petition No.10561 of 2013 (GM-

RES) dated 30.10.2015.

2. The parties herein are referred to as per their ranking in the Writ Petition.

3. Brief facts of case of petitioner were that Appellant/Petitioner was an EPC Contractor engaged in the commissioning of Hydel Power Plants. The Petitioner Company entered into a contract with SLS Power Corporation Limited, being the Project Authority to carry out engineering, procurement, assembly, erection, storage, handling, testing and commissioning and carrying out performance testing and commercial operation of 24 Mega Watt Hydro Electric Power Generation Plant, including Electro Mechanical and Hydro Mechanical Equipments for Dummugudem Mini Hydel Scheme with Six units of 4000 KW rated capacity each, on the left flank of the branch anicut of the Godavari river at Dummagudem Village, Bhadrachalam Taluk, Khammam District, Andhra Pradesh.

4. It was further case of petitioner that petitioner company had obtained the said contract through international competitive bidding (ICB) procedure and the said contract was entered into between the petitioner as well as the SLS company dated

02.07.2008.

5. Petitioner procured various equipments required for execution of the contract. The equipments so procured comprised of imported equipments, indigenous equipments and equipments fabricated indigenously. The petitioner procured electro–mechanical equipments and also electrical equipments. Several equipments required for execution of EPC contract were to be imported and the supply of goods to Hydro power projects, is deemed export within the meaning of Para 8.2 (g) of the Foreign Trade Policy (hereinafter referred as FTP for sake of brevity). The Petitioner applied to the Directorate of Foreign Trade (hereinafter referred as DFT for sake of brevity) for issuance of Advance Authorization in terms of Para 4.1.3 of the Foreign Trade Policy for duty free import of goods for supply to the Project Authority. Accordingly, Petitioner was granted advance Authorization No.0710064907 dated 21.05.2009 by joint DGFT, Bengaluru as a main contractor of the Hydel Power Project. In terms of the Advance Authorization, the Appellant was entitled to import goods worth CIF value of Rs. 68,27,31,904/- within a period of 24 months from the date of the advance Authorization, on or before 20.05.2011. The shipment date was extended by a further period of six months till 20.11.2011.

6. The Appellant was to full-fill export obligation of Rs.72,70,00,000/- by way of supplies to the Project Authority within a period of 36 months i.e., till 20.05.2012. The particulars of the goods to be imported under Advance Authorization and details of the goods to be supplied for fulfilling the export obligation were contained in the Advance Authorization issued by DGFT, to the Petitioner.

7. The Petitioner was also required to execute Bank Guarantee/Letter of Undertaking with the customs authority, as per the procedure prescribed before effecting imports.

8. The Petitioner subsequently obtained several equipments indigenously and invalidation letters were obtained from the Joint Director General, Foreign Trade in respect of such domestic procurement. The petitioner imported goods without payment of duty under the Advance Authorization by availing the benefit of exemption from payment of basic customs duty and additional customs duty in terms of Notification No.91/2004–CUS dated 10.09.2004.

9. Petitioner sought for exemption from payment of duty under Advance Authorization Scheme by executing a bond dated 26.09.2009 for an amount of Rs.68,95,59,223/-.

Petitioner, as directed by the Customs Officers, furnished a Bank Guarantee dated 26.09.2009 for an amount of Rs.2,25,00,000/- and it was valid till 25.09.2011. Petitioner renewed the said Bank guarantee twice, i.e., once from 26.09.2011 to

25.03.2012 and thereafter from 26.03.2012 to 25.09.2012. 10. Petitioner as per