DGFT Committee Minutes

MINUTES OF THE POLICY RELAXATION COMMITTEE MEETING NO.05/AM06 HELD ON 8TH AUGUST, 2005

The meet ing was held under t he Chairmanship of DG and t he list of of f icers present in the meeting 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. Firms Name Engineering Export Promotion Council File No. 01/81/162/57/AM05/ DES-II Subject: Conversion of Free S/bills into Scheme S/Bills.

The Commit t ee considered t he case as per det ails given in t he Agenda. This case had come up bef ore t he PRC on 5.7.2005 wherein it had been decided to have the comments of EP (Engineering) division of the Deptt of Commerce as t o on what premise t hat aut horit y had f ought t he CVD case wit h Govt . of USA and whet her t he decision on t he same was in f avour of t he Govt . of I ndia based upon t he st and t aken t hat benef it s of DEPB were not claimed/ allowed in t hese cases. The OM received f rom t he DOC and annexed t o t his agenda however, does not address t his quest ion. I t simply st at es t hat revocat ion of CVD Order came in ef f ect f rom 1.1.2000. I t was t heref ore decided t hat a copy of t he submission made by DOC bef ore t he USA Govt . should be procured and det ails t hereof examined and put up bef ore t he Commit t ee wit h t he specif ic ref erence as t o whet her t he issue of DEPB had come up in the arguments put forth by the Govt.
I t was also seen t hat as per t he communicat ion received f rom t he DOC, t he revocat ion of CVD had come int o ef f ect f rom 1.1.2000 and t heref ore t he plea t hat t he exporter was not able t o file DEPB S/ Bills af t er t his crit ical date is irrelevant. However, before taking a view it was also decided to have t he det ails of t he S/ Bills alongwit h dat e of export s in respect of S/ Bills where t he conversion has been sought . The case be put up bef ore t he Committee once more after the details are received.

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Case No. 2. Firms Name M/s. Roos Tempkool Ltd., Kolkata File No. 01/81/162/1040/AM05/DES-II Subject: Revalidation of advance licence No.0210011925 dated 10.5.2000.

The Commit t ee considered t he case as per det ails given in t he Agenda. The Commit t ee observed t hat in t he inst ant case t he of f ice of Zonal J t .DGFT, Kolkat a had processed t he case of EO discharge at a snails pace and by sending piece mill obj ect ions t o t he applicant . I t was decided t hat Zonal J t .DGFT, Kolkat a may be advised t o car r y out t he st udy of t he case relat ing t o delay in processing EO discharge case and reasons behind piece meal obj ect ions having been raised as also f ix t he responsibilit y f or such callous
attitude on the part of the officers/officials dealing with this case.
Onus of t he delay being on t he RLA concerned, it was decided t o revalidat e t he licence f or a period of six mont hs and t his six mont h period shall commence from the date such endorsement is made on the licence.
Case No. 3. Firms Name M/s. Nectar Lifescience Ltd., Chandigarh File No. 01/94/162/702, 704, 746/DES-IV Subject: Extension of EO period for Advance licenses issued for import of Penicillin G as raw material.

applicant had sought ext ension in respect of 3 licences 2 of which had been issued in Sept ember 2002 and 3rd one in J une 2002. I t was seen t hat in all t he 3 cases, Policy Circular dat ed J uly 2004 had come int o ef f ect af t er t he init ial EO period was over. Theref ore, onus was on applicant t o have f iled t heir request f or seeking ext ension in EO period bef ore t he crit ical dat e in t he mont h of J uly 2004 which t hey have not done. Furt her, t here are no j ust if ied reasons as t o why t hat t hey had not been able t o f ulf ill t he EO in t he init ial EOP prescribed. I t was also brought t o t he not ice of t he Commit t ee t hat GRC had also rej ect ed t his case particularly t aking int o account t he sensitivity of t he it em of import and PRC concurred with the views expressed by t he GRC, and decided t o rej ect t he request f or EO extension.

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Case No. 4. Firms Name M/s. Asia Cables, Chennai File No. 01/80/162/1698/AM05/DES-1 Subject: Revalidation of advance licence No. 0410026011 dated 2.5.2002.

Commit t ee observed t hat t he onus of delay in t he inst ant case was on t he Regional Licensing Aut horit y who had changed t he descript ion/ carried out t he amendment in t he licence by describing CC Copper Rod

t o read as Cont inuous Cast Copper Rod

af t er a considerable delay. The Commit t ee, t heref ore, agreeing wit h t he recommendat ion of t he ALC decided t o revalidat e t he licence f or a period of 6 mont hs. The 6 mont hs period shall commence from the date such endorsement is made on the licence.
Case No. 5. Firms Name M/s. Adinath Cables & Conductors Pvt. Ltd., Jaipur File No. 01/80/162/1574/AM05/DES-I Subject: Revalidation of advance licence No.1310006228 dated 4.7.2002.

represent at ive of t he ALC present in t he meet ing inf ormed t hat t he applicant had come bef ore t he Chairman ALC-2 and showed all t he document s relat ing t o f ulf illment of EO and t he Chairman ALC-2 being convinced t hat EO had act ually been f ulf illed, had decided t o recommend t his case t o PRC f or revalidat ion. When being asked as t o why t he Show Cause Not ice was issued by t he RLA on t he aspect of non f ulf illment of EO when t he applicat ion was act ually complete and EO had been f ulf illed, it was inf ormed t hat ALC had earlier sought a report f r om RLA concerned as t o why t he EO dischar ge cert if icat e had not been issued when t he EO was fulfilled, and in stead of responding to the same, RLA concerned had issued a SCN t o t he applicant . The Commit t ee was f urt her inf ormed t hat ALC is t aking up t his issue wit h t he RLA concerned separat ely. I n t he meant ime, PRC agreeing wit h t he recommendat ion of ALC decided t o revalidat e t he licence f or a period of 6 mont hs subj ect t o payment of a composit ion f ee of 2% on t he unut ilized CI F value of t he licence. This 6 mont hs period shall commence from the date such endorsement is made on the licence.

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Case No. 6. Firms Name M/s. Adinath Cables & Conductors Pvt. Ltd., Jaipur File No. 01/80/162/1575/AM05/DES-I Subject: Revalidation of advance licence No.1310006227 dated 4.7.2002.

represent at ive of t he ALC present in t he meet ing inf ormed t hat t he applicant had come bef ore t he Chairman ALC-2 and showed all t he document s relat ing t o f ulf illment of EO and t he Chairman ALC-2 being convinced t hat EO had act ually been f ulf illed, had decided t o recommend t his case t o PRC f or revalidat ion. When being asked as t o why t he Show Cause Not ice was issued by t he RLA on t he aspect of non f ulf illment of EO when t he applicat ion was act ually complet e and EO had been f ulf illed, it was inf ormed t hat ALC had earlier sought a report f r om RLA concerned as t o why t he EO dischar ge cert if icat e had not been issued when t he EO was fulfilled, and in stead of responding to the same, RLA concerned had issued a SCN t o t he applicant . The Commit t ee was f urt her inf ormed t hat ALC is t aking up t his issue wit h t he RLA concerned separat ely. I n t he meant ime, PRC agreeing wit h t he recommendat ion of ALC decided t o revalidat e t he licence f or a period of 6 mont hs subj ect t o payment of a composit ion f ee of 2% on t he unut ilized CI F value of t he licence. This 6 mont hs period shall commence from the date such endorsement is made on the licence.
Case No. 7. Firms Name M/s. ACME Conductors Pvt. Ltd., Jaipur File No. 01/81/162/1584/AM05/DES-I Subject: Revalidation of advance licence No.1310006281 dated 9.7.2002

represent at ive of t he ALC present in t he meet ing inf ormed t hat t he applicant had come bef ore t he Chairman ALC-2 and showed all t he document s relat ing t o f ulf illment of EO and t he Chairman ALC-2 being convinced t hat EO had act ually been f ulf illed, had decided t o recommend t his case t o PRC f or revalidat ion. When being asked as t o why t he Show Cause Not ice was issued by t he RLA on t he aspect of non f ulf illment of EO when t he applicat ion was act ually complet e and EO had been f ulf illed, it was

5 inf ormed t hat ALC had earlier sought a report f r om RLA concerned as t o why t he EO dischar ge cert if icat e had not been issued when t he EO was fulfilled, and in stead of responding to the same, RLA concerned had issued a SCN t o t he applicant . The Commit t ee was f urt her inf ormed t hat ALC is t aking up t his issue wit h t he RLA concerned separat ely. I n t he meant ime, PRC agreeing wit h t he recommendat ion of ALC decided t o revalidat e t he licence f or a period of 6 mont hs subj ect t o payment of a composit ion f ee of 2% on t he unut ilized CI F value of t he licence. This 6 mont hs period shall commence from the date such endorsement is made on the licence.
Case No. 8. Firms Name M/s. Zakaria Book Depot, Saharanpur.
File No. 01/94/180/DEPB/AM05/DES-IV Subject: Rejection of DEPB application as time-barred.

Commit t ee agreeing wit h t he plea put f ort h by t he applicant of having submit t ed t he applicat ion well in t ime and not having been able t o collect their deficiency etc. from the office due to illness of the Proprietor decided t o relax t he provision of t he policy and t reat t he applicat ion submit t ed on 10.2.2005 as having been submit t ed in t ime f or t he purpose of benef it s proposed to be availed against the said application.
Case No. 9. Firms Name M/s. Maruti Udyog Ltd., Gurgaon File No. 01/93/180/M-108/PC-1B Subject: Sale of vehicle imported against R&D Certificate in the open market.

Commit t ee rej ect ed t he request of t he applicant t o dispose of f t he Suzuki Baleno Wagon Passenger Car which had been import ed against t he R&D certificate. It was further decided to advise the applicant to re-export this car as applicable t o vehicles import ed f or R&D purposes wit hout f ollowing homologation procedure.
The meeting ended with vote of thanks to the Chair.

Annexure-I

LIST OF PARTICIPANTS

Ms. Seema Bahuguna, Addl.DGFT 2. Shri Surat Singh, Addl. DGFT 3. Shri S.K.Prasad, Addl. DGFT 4. Shri Vipin Saxena, EC 5. Shri Anil Bamba, Jt. DGFT 6. Shri A.K.Singh, Jt. DGFT 7. Shri S.B.S. Reddy, Jt. DGFT 8. Shri Anil Aggarwal, Jt. DGFT 9. Shri Tapan Mazumdar, Jt.DGFT 10. Shri P.K.Santra, Dy. DGFT 11. Smt. Kiran Sehgal, Dy. DGFT 12. Shri M.K.Parimoo, Dy.DGFT

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