DGFT Committee Minutes

MINUTES OF THE POLICY RELAXATION COMMITTEE HELD ON 12TH MAY, 2005

The meet ing was held under t he Chairmanship of DG and t he list of of f icers present in t he meet ing is given in Annexure-I . The decision t aken in each individual case t aken up f or discussion by PRC is detailed below:
Case No. 1
File No. 01/53/162/1002/AM03/K-32/ILS
Name of the applicant - Principal Chief Conservator of Forest,
Karnataka Forest Deptt. Bangalore.
The Commit t ee t aking int o considerat ion t he f act t hat t he applicant had sought dut y exempt ion f or import s under t he subj ect licence and t he same was pending wit h t he Minist ry of Finance, agreed t o t he request of t he applicant t o allow revalidation f or a f urt her period of six mont hs w.e.f . 17.1.2005
(t he licence is st at ed t o have been valid upt o 27.1.2005 as per earlier revalidation allowed in the instant case).
Case No. 2
File No.01/92/180/249/AM05/PC.II
Name of the applicant - M/s. Manasa Industries Pvt. Ltd.
I n t he inst ant case, t he export was st at ed t o have been made direct ly f rom t he premises of t he j ob worker inst ead of get t ing t he goods manuf act ured f rom t he said j ob worker and getting t hem back t o t he premises of t he EOU bef ore export s. The

Commit t ee f elt t hat t his was only a procedural lapse and t aking into consideration t he plea put f ort h by t he applicant and t he recommendat ion made by t he BOA regularised t he export s as if the export have been made directly from the EOU.
Case No.3
File No.01/ 81/ 162/ 887/ AM 05/ DES-II
Name of the applicant M/s. Shree Precoated Steel Ltd. Mumbai
The case relat ed t o t he revalidat ion of annual advance licence.
Policy at t he t ime of issue of licence provided t he period of validity the f or t he purpose of import s as 12 mont hs, which was subsequent ly ext ended t o 18 mont hs by way of Public Not ice, dat ed 28.1.2004. Theref ore in t he inst ant case t he licence having been issued on 18.6.2003 is deemed t o be valid upt o 17.12.2004. I t was also brought t o t he not ice of t he Commit t ee that ALC/RLA had taken a decision about enhancement in the CIF
subsequent t o t he expiry of t he validit y period of t he licence, t hat t oo, because, earlier t he f inancial powers f or RLA were rest rict ed t o 50 crores which was subsequent ly increased t o 100 crores for each licence. Taking t hese f act ors int o consideration, t he Commit t ee agreed t o grant revalidation f or a period of six months in t he inst ant case, which shall be effective f rom t he date of endorsement of such revalidation.

Case No. 4
File No. 01/81/162/1040/AM05/DES.II
Name of the applicant M/s. Roos Tempkool Ltd. Kolkata
The Commit t ee on perusal of t he case f ound t hat t he applicant had f iled an applicat ion f or obt aining Export Obligat ion Discharge Cert if icat e on 29.11.2001 and t he same had been allowed t o t hem af t er a lapse of more t han t wo years. The agenda papers placed bef ore t he Commit t ee did not specif y t he reasons as t o why t he Kolkat a Of f ice had t aken more t han 2 years t o issue EODC. The plea put f ort h by t he applicant is t hat t hey int ended t o ut ilize t he licence only af t er obt aining EODC. This f acilit y in all f airness cannot be denied. Furt her, since records did not reveal t he reasons f or delay on t he part of Kolkat a of f ice t o issue EODC, it was decided t o call f or a det ailed report f rom t he RLA as t o t he reasons t hat led t hem t o delay in issuing EODC by more t han 2 years. The case shall be placed bef ore t he PRC by DES-II once again on receipt of the said report from RLA.
Case No. 5
File No. 01/89/214/002/AM02/PC-I(A)
Name of the applicant M/s. Air France, New Delhi
I t was decided t o allow ex-post f act o approval t o t he exempt ion granted on file in the instant case for the following conditions:-
(a) At least 25% of samples are drawn f or t est ing inst ead of 100% (b) While drawing t he samples, it will be ensur ed by Cust oms t hat maj orit y samples are drawn f rom consignment s

originat ing f rom count ries wher e t here is no legal prohibition on the use of harmful hazardous Dyes. (c) The t est report will be valid f or a period of six mont hs in cases where t he t ext ile/ t ext ile art icles of t he same specification/ qualit y are import ed and t he import er, supplier and the country of origin are the same.
Case No.6
File No. 01/93/180/M-132/AM05/PCI-B
Name of the applicant Shri Sarabhit Singh Lamba, New Delhi
The Commit t ee agreed t o relax t he policy in t he inst ant case f or clearance of suzuki mot orcycle 2001 model and number AB12102369
Case No.7
File No. 01/83/50/887/AM02/DES VIII
Name of the applicant M/s. Maruti Techno Rubber Pvt. Ltd.
Noida
The Commit t ee observed t hat t he enhancement in adhoc norms in t he inst ant case had been allowed by ALC only af t er t he subj ect licence had expired. Theref ore, denying t he f acilit y t o t he export er t o ut ilize t his licence f or t he enhanced quant it y of DOP plasticiser is not j ust if ied. Accordingly, it was decided t o allow six months revalidation in the instant case for import of this item alone and t his six mont hs will be reckoned f rom t he dat e of endorsement of such revalidation made on the licence.

Case No.8
File No.01/83/162/1011/AM.04/DES-IV
Name of the applicant M/s. Punjab Rubber & Allied
Industries, Jalandhar
I t was not ed t hat old cases relat ing t o non-audit ing of DEEC by cust oms had been t aken up wit h DOR. DOR t ime and again t hrough t heir f ield f ormat ions have inf ormed t he export ers about non-availabilit y of t he records pert aining t o earlier periods and shown t heir inabilit y t o audit t hese DEECs f or purpose of issuing EODC and closure of t he case. I n t he inst ant case t he licence is st at ed t o have been issued in 1987 and EO is st at ed t o have been f ulf illed except f or t he f act t he DEEC et c. is not available wit h t hem and is st at ed t o have been lost / misplaced.
The Commit t ee observed t hat in case a duplicate DEEC is issued at t his st age f or complet ion of t he f ormalit ies of audit ing by customs, it will be a futile exercise as customs authorities will not be in a posit ion t o complet e t his f ormalit y in t he absence of t heir records. Theref ore, it was decided t o relax t he policy in t he inst ant case and allow waiver f rom submission of original licence and DEEC book. However, RLA shall examine all ot her document s and related evidence before allowing EODC.

Case No.9
File No.01/84/162/142/AM04/DES-V
Name of the applicant M/s. Monika India, Ludhiana
The Commit t ee observed t hat t his is basically an issue of nexus and mat ching of technical characteristics in respect of t he material import ed and t he one used in t he export product . This aspect has t o be looked int o by ALC and PRC does not have a role.
The case t heref ore is r evert ed back t o ALC t o examine the matter in its entirety and take a view.
Case No.10
File No. 01/84/50/341/AM04/DESV
Name of the applicant M/s. Zazman Exports, Kanpur
I nst ant case has come t hrough GRC. The det ails however, were not clear as t o what act ually t he applicant s r equest was.
Apparent ly, it appears t hat t hey have export ed product wit h unit soles whereas in respect of Dual Densit y Soles t he norms had been revised and t hey are seeking application of t hese norms in respect of product s export ed wit h unit soles by t hem/ proposed to be exported by them. PRC however could not take a decision in the matter in the absence of various details which included

i) Whet her in t he inst ant case t hey had already export ed or whether some of the exports were yet to be made.
ii) Whet her t hey have export ed/ proposed to export product with unit soles or Dual Density soles. iii) I n case t he export s had been already ef f ect ed, whet her t he exempt mat erials declarat ion on t he shipping bills

wit h det ails t her eof and quant it ies et c. ar e in conf ormit y wit h t he input s sought t o be included f or t he purpose of imports. iv) The status of the licence, about its validity etc .
I t was decided t o revert t he case t o ALC who will provide t hese det ails and call t he applicant in PH if need be t o address all t he corresponding issues and provide adequat e input s f or PRC t o t ake a decision in the matter.
Case No.11
File No.01/94/162/01391/AM05/PCIV
Name of the applicant

St.John Freight Systems
The applicant in t he inst ant case had claimed revalidat ion on t he premise t hat since Tut icorin had not been not if ied as I CD f or import s, t hey wer e unable t o import t he machiner y wit hin t he init ial validit y period of t he Dut y Ent it lement Cert if icat e. The Commit t ee t ook a view t hat t hey were f ree t o import it f rom any ot her port and t his plea could not be accept ed as t he reason f or not ut ilizing DFEC wit hin it s init ial validity. I t was t heref ore decided to reject the request of revalidation.
Case No. 12
File No. 94/162/1260/AM05/PC-IV
Name of the applicant M/s. Omprakash Purshotamdas Exports
Pvt. Ltd. Bhopal
The Commit t ee agreed t o allow revalidat ion f or a period of six mont hs in this case subj ect t o t he condit ion t hat RLA concerned

verif ies t he f act t hat proper RBI s approval has been obt ained f or receipt of delayed payment s/ inward remit t ances of Foreign Exchange against t hese export s. The said revalidat ion, subj ect t o t he condit ion as above, will be f or a period of six mont hs f rom the date the same is endorsed on the DEPB
Case No.13
File No.01/94/180/DEPB-Ajay Apparels/AM05/PC-IV
Name of the applicant M/s. Ajay Apparels, Kolkata
I t was decided t hat t his case should f ir st be examined by ALC and t hereafter if ALC deems it t o be a fit case f or relaxat ion, the same be referred to PRC for a decision in the matter.
Case No.14
File No. P.1(6)/AM.03/DBK Cell &
P.1(3)/AM.03/DBK Cell
Name of the firm

M/s. Prime Energy Private Ltd. New Delhi
The applicant in this case had f iled t he application for deemed export drawback claim with t he RLA concerned whereas t hey were required t o f ile it wit h Development Commissioner. They have pleaded that once t hey f iled t he applicat ion wit h RLA, RLA did not guide t hem properly about t he change in t he policy, which provided t hat t he applicat ion had t o be f iled wit h t he Development Commissioner concerned. The Commit t ee t ook not e of t he f act t hat amendment in t he policy t o f ile t he applicat ion inst ead of RLA was t o f acilit at e t he disposal and t aking a view on t his it was decided t hat RLA concerned shall process t he same

and f inalise t heir claim, provided t he claim is ot herwise admissible.
Case No. 15
File No.01/92/180/238/AM05/PC.II
Name of t he applicant

M/ s. Mut hoot Hot el and t ourism Ventures (P) Ltd.
The Commit t ee agreed wit h t he recommendat ions of BOA and decided t hat t hey are ent it led t o r e-imbursement of CST amount paid by t hem and ref und of Cent ral Excise Dut y (if paid) in t erms of Para 7.23 o f FTP. Accordingly, t he f irm should be ref unded the amount already paid as Duty Drawback as SEZ Developers. .
Case No. 16
File No.01/91/162/71/AM04/PC-III
Name of the applicant M/s. Pyramid Timber Associates Pvt. Ltd.
Mysore
Taking int o considerat ion t he plea put f ort h by t he applicant of it s inabilit y t o supply t o war prone I raq wit hin t he init ial validit y period, the Commit t ee agr eed t o the ext ension of validity period of t he cont ract regist ered wit h CAPEXI L vide No.CPX/ SR/ REG- CONTRACT/P-06, dat ed 9.12.2003 f or 283.165 CBM valid upt o 30.12.2003 (Bill of ent ry No.505209, dat ed 30.6.2003) f or a period of six mont hs. I t was f urt her decided t o relax t he policy and permit t he regist rat ion of cont ract f or balance 15000 Cf t . Of Teak wood for export to Iraq.

Annexure-I

LIST OF PARTICIPANTS

Smt. Seema Bahuguna, Addl. DGFT Shri Surat Singh, Addl. DGFT Shri S.K.Prasad, Addl. DGFT Shri Vipin Saxena, EC Smt. Pratima Dixit, Jt. DGFT Shri Anil Bamba, Jt. DGFT Shri A.K.Singh, Jt. DGFT Shri P.C.Tripathi, Jt. DGFT Shri S.B.S. Reddy, Jt. DGFT Shri Ajay Srivasatava, Jt. DGFT Shri Raj Kamal, Jt. DGFT Shri Anil Aggarwal, Jt. DGFT Shri P.K.Santra, Dy. DGFT Smt. Kiran Sehgal, Dy. DGFT Shri M.K.Parimoo, Dy.DGFT