Legal principle

Where export of a commodity is regulated rather than totally restricted or prohibited—i.e., permitted under approved quota with specific permission of the competent authority—the exclusion of 'products restricted for export' from the RoDTEP Scheme does not apply, and exporters who shipped under such permission are entitled to duty credit.

Court decision

The writ petitions were allowed in favour of the petitioners: they were held entitled to RoDTEP benefits; respondents were directed to grant the rebate to exporters who shipped sugar with specific permission under the Directorate of Sugar conditions but were not granted benefit; where benefits were withdrawn or recovered, refund was to be made within four weeks with interest at 6% per annum; and the respondents were restrained from taking coercive recovery action where benefit had been granted.

Facts

The petitioners, including Rika Global Impex Ltd., Shree Renuka Sugars Ltd., K.S. Commodities Pvt. Ltd. and Uma Exports Ltd., exported white crystal sugar bearing ITC(HS) Code 17011490 and were availing duty credit under the RoDTEP Scheme. By Notification No.10/2015-20 dated 24 May 2022, the sugar export policy was revised from 'free' to 'restricted', permitting export only with specific permission from the Directorate of Sugar (DFPD), and the petitioners were permitted specified quantities under the Combined Export Release Order dated 5 June 2022. After the petitioners discharged their export applications, the department denied them RoDTEP benefits on the ground that the exports were 'restricted exports' under Paragraph 4.55(iv) of the FTP read with Notification No.19/2015-2020 dated 17 August 2021, and in some cases initiated recovery of benefits already granted.

Key provisions

• Section 28, Customs Act, 1962 — Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded
• Section 51B(1), Customs Act, 1962 — Ledger for duty credit