Directorate General of Foreign Trade (PRC-section) Minutes of the Policy Relaxation C Committee Meeting held under the Chairmanship of DGFT Shri Alok Vardhan Chaturvedi, Director General of Foreign Trade on 06.12.2017 Chaturvedi, Director General of Foreign Trade on 06.12.2017 Meeting No. 25/AM18 held on 06.12.2017 at 10:00 AM The following members were present in the meeting:

1. ShriN. 7. 5. Monga Addi. DGFT
2. Shri kK. C. Rout Addl. DGFT
3. Shri Jaikant Singh Addl. DGFT 4, ShriS. 8. 5. Reddy Addi. DGFT
4. Shri Jay Karan Singh Jt. DGFT 6, Shri Akash Taneja Jt. DGFT Following cases were discussed. The decision taken on the individual cases are as under:-

Case No.1: Ms. 0. 0, International (P) Ltd., Punjab

F. No. 01/60/162/728/AM17/PRC PRC Meeting No. 25/AM18 dated 06.12.2017 Subject: Request for grant of condonation for delay in applying of transferability of license and transfer the license for a validity period of at least one month from the date of issuance of transferability under DFIA no. 1210008744 dt. 25.06.2013. Aggrieved by the committee’s decision dated 26.10.2016, the applicant sought persona! hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 06.12.2017. Shri Pradeep Tayal, CA & Smt. Suman Bansal, CS on behalf of M/s D.D. International (P) Ltd, appeared before the committee and made the following submissions stating inter alia that: a. They had applied for post export DFIA License vide no. 12/21/76/00008/AM14/ dated 21.06.2013. Further, they have been issued the same vide License No. 1210008744 dated 25.06.2013. b, The export period for the above license was 18 months and period of shipment (Period of import) mentioned in the license was earlier than export period as follows: rae किB 55 ae ea no. | Date Export period | Period of Shioment _ 4210008744 | 25.06.2013 | 24.12.2014 30.06.2014 c. They had made export within specified period. But BRC’s date of few of their shipping bill is 22.09.2015. d. They applied for transferability of the license on 30.09.2015 (i.e. within one week of BRC). As before realization of BRC, they were not able to apply for the same. e, Asstt. DGFT, Amritsar has rejected their application vide his letter dated 16.10.2015 by stating reason that license has been expired. f. 19108, they requested for grant of condonation of delay in applying of transferability of license and to give instruction to RA, Amritsar to allow with a validity period of at least one month from the date of issuance of transferability. i? Be a

Decision: The case was discussed again at length after giving patient hearing to the representatives. it was noted that DFIA under FTP, 2009-2014 was issued initially with actual user condition having 12 months validity to import and 18 months to fulfil stipulated export obligation. In case exporter willing to avail facility of replenishment with transferability then he has to export first against the ED! File Number and submit documents including proof of realising remittances, In such cases, RA issues transferable DFIA having 12 months validity to import the goods, The submissions made by the applicant are factually not correct. Since they had obtained DFIA with AU condition, import should have been made within the validity of the Authorisation or export documents should have been submitted to RA within validity of the Authorisation for getting transferability. Thereiore, rejection letter issued by the RA was as per the provisions of the FTP. Since, the applicant did not give any cogent reason of genuine hardship of not making imports within the validity period of DFIA, the committee did not accede to the request and reiterated its earlier decision. (Action: Applicant)

Case No.2: M/s. Thirumalai Chemicals Ltd., Chennai

7 No. 01/60/162/998/AM17/(PRC) PRC Meeting No. 25/AM18 dated 06.12.2017

Subject: Request for Second Revalidation of DFIA No.0410160189 dt. 24.02.2015

Decision: Aggrieved by the committee's decision dated 06.07.2017, the applicant sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 06.12.2017. The date of personal hearing was communicated to them through e-mail. However, no one turned up for PH nor they requested for postponement of date. The committee, however, in the interest of natural justice decided to defer the case. The applicant may seek next date. (Action: Applicant)

Case No.3: M/s. UPL Ltd. Mumbai

F. No. 01/60/162/359/AM18/PRC PRC Meeting No. 25/AM18 dated 06.12.2017 Subject: Request for accounting of 23 S.Bills in license no. 0310767317 dt. 22.01.2014 from license no. 0310792649 dt. 06.01.2015 towards discharge of EO and redemption of the Authorisation. The applicant sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 06.12.2017, Shri Padmendra Singh Rawat, Vice President, Corporate Affairs and Shri Ajit Pitale Dy. General Manager from M/s UPL Ltd. Mumbai appeared before the committee and made the following submissions stating inter alia that: 1. Against the said license they have imported 3,56,000 kgs of Dimethyl Carbonate and exported 47,86,200 Ltrs against quantity of 17,05,700 Ltrs i.e. exports made more than 100 % within initial EOP and all proceeds were realized. They had submitted al! documents to RA, Mumbai. 2 However, due to reduction in norms of Dimethy| Carbonate from 0.248 kgs to 0.165 kgs in the Norms Committee meeting no. 05/83-ALCS1/2014 Dt. 04.06.2014, export obligation increased to 21,57,9/6 Ltrs, out of which they have already exported 17,86,200 ltrs and additional exports to be made is 3,71,376 Ltrs. 3. Hence, they requested to consider 23 s.bills ie. s.b, nos. 7217698 dt. 14.01.2015-16500 Ltrs, 7388842 di, 23.01.15 - 17000 Ltrs, 7405661 dt. 24.01.2015-16500 Ltrs, 7412840 di. 24.01.2015- 46500 Ltrs, 7451158 dt. 28.04.15-17000 Lirs, - 7462738 dt. 28.01.15 - 16500 Ltrs, 7479767 dt are 2 Qo —

29.01.315-16500 Ltrs, 7520799 dt. 30.01.2015-18000 Ltrs. 7518746 di. 30.01.15-16000 Lirs, 7536544 dt. 31.01.15-18000 Ltrs, 7535153 dt. 31.01.15-16500 Lirs, 75981 di. 03.02.15-16500 Ltrs, 7618288 dt. 04.02.15-16500 Ltrs. 7642803 dt. 05.02.15-16500 Ltrs, 8097789 dt. 28.02.15-18000 Ltrs, 16500 Ltrs, 7642803 dt. 05.02.15-16500 Ltrs, 8097789 di. 28.02.15-18000 Ltrs, 8188485 dt 04.03.15-18000 Ltrs, 8172431 dt. 04.0315-18000 Ltrs, 8259699 dt. 09.03.15-16500 Ltrs, 8286285 dt. 10.03.15-16500 Ltrs, 8351083 dt. 13.03.15-16500 Ltrs, 8399206 dt. 16.03.15-16500 Ltrs, 8417782 dt. 17.03.15-16000 Ltrs, 8470857 dt. 19.03.15 - 16500 Ltrs, in license No 0310767317 dt. 22.01.2014 from license No. 0310792619 dt. 06.01.2015 towards completion of EO for redemption purpose. 4, Exports under that s.bills were made within 18 months from date of issue of license No. 0310767317 dt. 22.01.2014 upto 04.03.2015. Proceeds against all these 23 s.bills have already been realized. Decision: The case was discussed at length. ॥ was noted that all 23 shipments were made within the obligation period of Authorisation dated 22.01.2014, the committee, therefore, decided the following: |. Above mentioned 23 shipping bills shall be accounted against Authorisation No 0310767317 dt. 22.01.2014 towards discharge of EO. ll. This will, however, be allowed subject to payment of Rs. 200/-per shipping Bilis to RA concerned; lll. An affidavit duly Notarised affirming therein that these shipping have not been/shall not be taken into account towards discharge of EO other that Authorisation No 0310767317 dt. 22.01.2014. If any loss incurred to the exchequer and noticed in future, they will reimburse the same with applicable interest without any protest; {\V. RA shall check and ensure that these shipping bills have not been accounted towards discharge of EO against Authorisation No 0310792619 dt. 06.01.2015. (Action: Applicant/RA, Mumbai)

Case No.4: M/s. Hindalco Industries Limited. Mumbai

F. No. 01/60/162/360/AM18/PRC PRC Meeting No, 25/AM18 dated 06.12.2017 Subject: Request to allow filing of MEIS Application manually and grant them MEIS Scrip against shipping Bilt No. 1489196 dated 06.10.2016 wherein IE code number of Vedanta Ltd. is wrongly mentioned in place of IE code number of M/s Hindalco Industries Limited. The applicant sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 06.12.2017. Shri Sudhansu Sekhar Nayak, Sr. General Manager and Mr. Hemanto Basu from M/s Hindalco Industries Limited, Mumbai appeared before the committee and made the following submissions stating inter alia that: 1, Their export consignment under Shipping Bill No.1489196 dated 6.10.2016 (against their Invoice No. AFG/2017/267 dated 5.10.2016) has inadvertently been recorded against Importer - Exporter Code No.178800234 of M./s Vedanta Limitd in place of 0388147237 of M/s Hindalco Industries Limited This consignment was shipped out from Vizac Sea Port (Port Code INVTZI). It is a simple clerical efror committed by CHA’s employee at the time of preparation shipping bill as the same CHA handles export consignment of both the exports. 2. Owing to this reasons subject Shipping Bill was not appearing at Shipping Bill repository of DGFT Server for MEIS application against the right IE code 0388147237 of M/s Hindalco Industries Lid ro 3

and flashing the following message “No Record found matching Shipping Bill No.1489196 dated 6.10.2016 from date 28.8.2012 to 27.6.2017(Shipping date range). 3. In this context, they draw this office attention to the following points/documents:.- (i) From the office of the Principal Commissioner of Customs, Visakhapatnam a certificate has been issued in this respect and to enable Hindalco Industries Limited to claim DBK and MEIS benefit against subject Shipping Bill No.1489196 dated 6.10.2016. Copy of said certificate is attached. (i) — Copy of said Shipping Bill on the face of which Customs Authority has manually certified that iE number of this Shipping Bill to be read as 0388147237 (of Hindalco Industries Ltd.) instead of 1788000234 (of Vedanta Limited) is attached. (iii) ४8२७ against subject Shipping Bill has been uploaded by their concerned Bank as payment against Shipping Bill has already been realized from their overseas buyer. Copy of concerned e. BRC is attached. 4, Hence they requested to consider their case and allow them to submit MEIS application manually and grant them the requisite MEIS Authorization against captioned Shipping Bill. Decision; Having heard to the petitioner, the case was discussed at length. It was noted that the Para 1.12 of HBP, 2015-2020, provides that in case of the Non EDI shipping bills or the shipping bills not received through the Message Exchange from Customs, concerned RA shail verify the details entered by the exporter from the original shipping bills before grant of benefits. In this case also, though exports are made from EDI port but shipping bill is nol transmitted in the account of the applicant due to wrong IEC mentioned in the said shipping bill. Taking into consideration the fact that the Customs Authority has corrected the mistake, the committee decided the following: |. The applicant shall file manual application feeding required details of Shipping Bill. |. RA shall verify the details and issue Duty Credit Scrip as per FTP. ll. EDI may transmit the scrip to ICEGATE using special flag 1V. The Scrip will be registered at the port after verification of shipping details by Customs. (Action: Applicant/RA, Kolkata/Customs Authority)

Case No.5: M/s. Lupin Ltd., Mumbai

7. No. 01/60/162/757/AM18/PRC PRC Meeting No. 25/AM18 dated 06.12.2017

Subject: Request for waiver of PC 18 condition of advance authorization no. 0310771349 dt. 21.02.2014.

Decision: Aggrieved by the committee's decision dated 19.01.2016, the applicant sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 07.11.2017. The date of personal hearing was communicated to them through e-mail. However, no one turned up for PH nor they requested for postponement of date. The committee, however, in the interest of natural justice decided to defer the case. The applicant may seek next date. (Action: Applicant)

Case No.6: M/s. Rochem Separation systems India Pvt. Ltd., Mumbai

F. No. 01/60/162/207/AM17/PRC PRC Meeting No. 25/AM18 dated 06.12.2047 Subject: Request for Redemption of Advance Authorization no. 0310709793 dt. 20.09.2012. (waiver of bill of export) Aggrieved by the committee’s decision dated 10.08.2016, the applicant sought personal hearing in terms of Par, 2.59 of FTP, 2015-2020, which was afforded to them on 07.11.2017. Shri Tejash Shah, Director and Naresh Shah representative from M/s. BDR Pharmaceuticals International Pvt. Ltd. appeared before the committee and made th following submissions stating inter alia that: 1. The above mentioned advance authorization was issued to them by the RA Mumbai. They nave fulfilled their export obligation by supplying the goods to units located in the SEZ, details of supply to the unit in the SEZ and fulfillment of 5.0. is as follows Sea, Ve as per|Name आए ‘the | Details of me] ae vue - for | f icence ; Customer (unit | invoices raised ulfilling the export _ |; ह जिu ocated in the SEZ) ae a ‘obligation | roe “| 100% | Glenmark Generics | Excise Invoice | 5250000.00 7 | ; Ltd., Gujarat ' Nos.501050 dated | 13.12.2012 &; | | | 501055 dated | a boo 812013 a 3. Subsequently, various correspondences were made with the DGFT, they have provided all the documents required for redemption of the above advance authorization except for the bill of the export in respect of supply made to the units in the SEZ. 4 As submitted above, since this was the first time that they had made the supplies to the units located in the SEZ out of the duty free imports undertaken against Advance Authorisation, they were not aware that Bill of export was required to be filed at the time of supplying the said goods to the SEZ. 5. They understand that the Bill of export cannot be filed after supply of goods to the SEZ and hence they cannot now procure the said Bill of Export. They understand that the purpose of the Bill of Export is to substantiate the supply of goods into the SEZ. 6. In lieu of the said bill of Export, they have already submitted the form ARE-1 duly certified by the Excise Deptt. of the receiving Unit and a certificate from jurisdictional excise authority towards proof of supply of goods to the Special Economic ZONE 7, Hence, they requested to consider their case and issue instruction to RA for issuance of Redemption letter at the earliest. Decision: The case was discussed again at length. It was noted that Advance Authorisation is issued to allow duty free import of inputs with certain conditions. One of the conditions is that the exporter shall submit export documents within 2 months from the expiry of export obligation. Application for redemption of Advance Authorisation is required to be submitted on ANF-4F. In the ANF-4F under Para (a) (ii) of guidelines for application (HBP, 2009-2014 Vol-l), it is mentioned categorically that exporter shall submit ‘Bill of Export’ along with other prescribed documenis. And, in terms of Para 4.12 of FTP, exporter is required to indicate consumption of inputs in the export documents. Further, for getting incentive on supply of goods to SEZ, “Bill of Export’ is a prescribed document under Rule 30 of SEZ, Rule, 2006. ॥ view of these provisions, it becomes imperative that Export obligation against an Advance Authorisation cannot be discharged without establishing nexus of duty free imported inputs [ or procured indigenously against advance authorization} and resultant product supplied to the SEZ Unit. Since ARE-1 does not have such information, the committee was of the view that requirement of 'Bill of a , @

Export’ cannot be dispensed with. Further, no valuation of ARE-1 is being carried out by the Customs/Excise Authority at receiving end: such supplies are considered free shipment meaning thereby that the exporter/supplier do not intend to take any benefit against the supply made. The Committee, therefore, decided to re-iterate its decision taken in Meeting dated 10.08.2016 and directed the applicant to get the case regularised as per the provisions in Para 4.49 of HBP, 2009-2014. (Action: Applicant! RA, Mumbai: in case the applicant fails to get the case regularised within a month from the date of uploading of this decision on the Directorate website, the RA shall initiate action as per the provisions of FT. (DR) Act, 1992, as amended)

Case No.7: M/s. Rochem Separation systems India Pvt. Ltd., Mumbai

7. No. 01/60/162/208/AM 1 7/PRC PRC Meeting No. 25/AM18 dated 06.12.2017

Subject: Request for Redemption of Advance Authorization no. 0310601578 dt. 16.11.32010. (waiver of bill of

export) The applicant made the similar submission as per case No 6 above. Decision: Decision at case No 6 above is reiterated.

Case No.8: M/s. Rochem Separation systems India Pvt. Ltd., Mumbai

F, No, 01/60/162/206/AM17/PRC PRC Meeting No. 25/AM18 dated 06.12.2017

Subject: Request for Redemption of Advance Authorization no. 0310600057 di. 03.11.2010 (waiver of bill of

export) The applicant made the following similar submission: 4. The above mentioned advance authorization was issued to them by the RA Mumbai 2. They have fulfilled their export obligation by supplying the goods to units located in the SEZ, details of supply to the unit in the SEZ and fulfillment of E.0. is as follows: License No. EO as per! Name of Fe] bee Details on Ne the | Invoice value - for | licence ; Customer (unit | invoices raised fulfiting the — export | located in the ' obligation | SEZ) | | | 0310709793 : 100% Glenmark Excise Invoice | 5250000.00 | Generics Ltd., | Nos.501050 | । | Gujarat 13.12.2012 & 501055 | | _| dated 3.12013 3. Subsequently, various correspondences were made with the DGFT, they have provided all the documents required for redemption of the above advance authorization except for the bill of the export in respect of supply made to the units in the SEZ. 4. As submitted above, since this was the first time that they had made the supplies to the units located in the SEZ out of the duty free imports undertaken against Advance Authorisation, they were not aware that Bill of export was required to be filed at the time of supplying the said goods to the SEZ. 5, They understand that the Bill of export cannot be filed after supply of goods to the SEZ and hence they cannot now procure the said Bill of Export. They understand that the purpose of the Bill of Export is to substantiate the supply of goods into the SEZ. a

In lieu of the said bill of Export, they have already submitted the form ARE-1 duly certified by the Excise Deptt. of the receiving Unit and a certificate from jurisdictional excise authority towards proof of supply of goods to the Special Economic ZONE. 7. Hence, they requested to consider their case and issue instruction to RA for issuance of Redemption letter at the earliest. Decision: Decision at case No 6 is reiterated.

Case No.9; M/s. Rochem Separation systems India Pvt. Ltd., Mumbai

F. No. 04/60/162/1257/AM17/PRC PRC Meeting No. 25/AM1 dated 06.12.2017 Subject: Request for Redemption of Advance Authorization no. 0310525500 dt. 23.06.2009. (waiver of bill of export) The applicant made the following similar submission: 1, The above mentioned advance authorization was issued to them by the RA Mumbai. 2. They have fulfilled their export obligation by supplying the goods to units located in the SEZ, details of Supply fo the unit in the SEZ and fulfillment of 5.0. is as follows: ; License No. [EO as per|Name of the [ Detais of ma ह Invoice value — for | गा | licence : Customer (unit | invoices raised fulfilling the export | fe located in the SEZ) obligation | 0310709793 | 100% Glenmark — Generics ee a 5250000.00 Lid., Gujarat Nos.501050 dated | | । (13122012 8 " ; 501055 dated | | a _ __ [31.2013 3. Subsequently, various correspondences were made with the DGFT, they have provided all the documents required for redemption of the above advance authorization except for the bill of the export in respect of supply made to the units in the SEZ. 4, As submitted above, since this was the first time that they had made the supplies to the units located in the SEZ out of the duty free imports undertaken against Advance Authorisation, they were not aware that Bill of export was required to be filed at the time of supplying the said goods to the SEZ. 5. They understand that the Bill of export cannot be filed after supply of goods to the SEZ and hence they cannot now procure the said Bill of Export. They understand that the purpose of the Bill of Export is to substantiate the supply of goods into the SEZ. 6. In lieu of the said bill of Export, they have already submitted the form ARE-1 duly certified by the Excise Deptt. of the receiving Unit and a certificate from jurisdictional excise authority towards proof of supply of goods to the Special Economic ZONE. 7. Hence, they requested to consider their case and issue instruction to RA for issuance of Redemption letter at the earliest Decision: Decision at case No 6 is reiterated, (Action: Applicant/RA, Mumbai)

Case No.10: M/s. E-Shakti.com Pvt. Ltd., Chennai

है F. No. 01/60/162/05/AM17/PRC ८ aD है PRC Meeting No. 25/AM1 dated 06.12.2017 (x fe

Subject: Request for waiver of procedural requirement of not mentioning File No/Advance Authorisation No on shipping Bilis while effecting export towards discharge of export obligation against Advance Authorisation No 0410129565 dated 21.10.2011 & No 0510389931 dated 23.07.2014, Aggrieved by the committee's decision dated 08.11.2016, the applicant sought personal hearing in terms of Para 2.59 of FTP, 2015-2020, which was afforded to them on 31 08.2017. Mr. B. G. Krishnan, Director of the company appeared before the committee and made the following submissions stating inter alia that: 1. They have submitted earlier only a certain procedural aspect of their case which has been considered and other merits of their case have not been considered, namely: i. They were essentially an export oriented Operations, with about 99.86% of the sales revenue being from exports. ii All their exports have been registered with Customs as they were done by air cargo mode and are available in our EDPMS records. il. They have met their export obligation several times over and well ahead of time stipulated in the Advance Authorization. iv. It was not in their control to mention the advance authorization number on their S/Bills, as their 500-1000 daily consignments containing one or two customized garments for individual retail customers, would vary from each other and customs department does not have the wherewithal to open ali boxes, verify it for the consumption of respective duty-free imported materials, they could not ship under advance authorization S/Bill but were obliged to ship under Free Shipping Bill. v. They were given the AA, but the arrangement for recording the AA number in the S/Bill, is not available and possible in case of retail exports like them. 2. They like to present further the following: a) Data that conclusively shows that what was imported was exported. b) They exported several times over the export obligation. c) They have no control if Customs deem it impossible to verify at the export point and therefore to allow them to affix their AA number on the shipping document, d) They have not been told by the DGFT at the time of the issue of the AA that B2C exports cannot be done via the route of the AA. €) They have exported worth Rs.300 crores in the last 5 years and have not taken a single rupee worth of export benefit right up until four months ago. f) The policy of India is not to export taxes. Therefore, to not give them the benefit of tax- free imports is inconsistent with that policy and they are confident that the empowered body is one for Policy review, and not just conformity to rules, and will see their point 9) The Supreme Court has held time and time again that exporters should not be denied benefits for technical breach of procedure when they have met the substantive export obligations. This is entirely true in their case, 3. They have stated that the PRC has considered only a certain procedural aspect of the matter referred to in their application and had given their opinion on same. They have only considered the matter of Free Shipping Bills vis-a-vis Advance Authorization Shipping Bill. They have not considered the totality of the representation that they had made which clearly established the bonafide of the exports made by them to discharge the Advance Authorization obligations in the time specified. 4. However, in the case of Customized Fashion Garments through the e-Commerce mode — a specific B2C sector which the Government seeks to promote in its FTP 2015-2020, the infrastructure for verification and review by Customs authorities is not available in the Indian Customs as every garment is unique and made to customer (a definition that the FTP 2015- 2020 itself provides for), In other words, there is lacuna in the rules and the rules making

them inconsistent, the policy of the Government with respect to make-in-india, export promotion, and building international brands of India origin. 5. This Jacuna in the procedure available is the only reason they could not file the AA Shipping Bills as the current system administered by Customs does not provide for it. Instead the documents they have filed are characterized as Free Shipping Bills. This cannot be a default in the hands of the exporter. 6. This matter has enormous implications not only for them, but for all e-commerce B2C exporters especially in the textile sector which the Government seeks to promote as a matter of policy in line with the Prime Minister's Make-in-India initiative. 7. It is an established norm that taxes and duties cannot be exported. The Govt. of India has announced as part of it FTP various schemes from time to time and the DGFT administers such policies. Advance Authorization is one of the schemes which is available to all exporters, it is indeed available to B2C exporters as well and DGFT had issued the same to them. 8. They have furnished complete documentation to establish that the fabrics imported were used for exports and they have met their export obligations. Indeed, all the documents are part of the records of EDPMS and are available to Customs, DGFT and the Finance Ministry. 9. Hence, they need to procedures for obtaining and discharging Advance Authorization to be rendered usable by them so that they can comply with them completely and easily. The committee explained the provisions of the policy and procedure to the applicant and reason of seeking EP copy of Shipping Bill having details of Advance Authorisation and consumption of inputs on it. Taking into consideration the genuine hardship of not mentioning details of Authorisation on shipping bills, the committee, was willing to waive the requirement but at the same time it was wanted to ensure that duty free materials imported under Advance Authorisation were not used for any other purpose and diverted in the focal market. The committee, therefore, asked Mr. B. G. Krishnan to submit the following documents: i. Annual return file to IT department during assessment years 2011-12, 2012-13, 2013-14 and 2014-2015. il. Audited balance sheet for the years 2011-12, 2012-13, 2013-14 and 2014-2015. iii. A certificate from independent Chartered accountant certifying import and export data (quantity and value) for 2011-12, 2012-13, 2013-14 and 2014-2015 and consumption of whole imported inputs in the exported products. IV. An affidavit duly notarised affirming therein that no domestic sale of even single article was made by the company during 2009-2013. In case any revenue loss to the exchequer is noticed in future, they will pay immediately whole of duty plus applicable interest to the Customs Authority without any protest and will be liable for penal action under the provisions of FT(DR)Act, 1992, as amended. On receipt of the documents, PRC will examine this case again and the same will be decided thereafter on merit. Accordingly, the applicant has submitted the following documents: * Certificate from an independent Chartered Accountant Pertaining to import and export for the year 2011-12, 2042-43, 2013-14 and 2014-15. « Notarized affidavit as required e Audit balance sheet for the years 2011-12, 2012-13, 2013-14 and 2014-15. ¢ Annual returns file to IT department for the years 2011-12, 2012-13, 2013-14 and 2014-15,

The firm, on notary, submitted the data of consumption in domestic market during F.Y 2011-12 to 2014-15 in tabulated form which is as under: | Particulars oo TFY 2011-12 | FY 2012-13 | FY 2013-14 TP FY 2014415 | Imported item consumed for | NIL NID TID [Nie — | | domestic revenue ! | | | [Domestic revenue 784008771200 | कक्त Tae | Domestic revenues as ० % | 0.25% | 0.09% ~~ 0.03% | | at a: OtotalRevene 1 रा 1 4 ¢ The applicant has submitted that about 99.9% of the sales revenue came from exports only. e All their exports have been registered with Customs as they were done by air cargo mode and are available in our EDPMS records. * They were given the AA, but the arrangement for recording the AA number in the S/BIll, is not available and possible in case of retail exports like them. « They have exported worth Rs.300 crores in the last 5 years and have not taken a single rupee worth of export benefit right up until four months ago. Decision: In view of the documents and submissions made by the applicant, the case was again discussed at length. It was noted that this is a peculiar case in which 500-1000 consignments containing one or two customized garments for individual retail customers were exported against order booked through e-commerce, It may be difficult to check each and every piece by Customs Authority and without opening of consignment, consumption of duty free inputs cannot be assessed unless it is Supported by test report from independent test laboratory. Further, unpacking and repacking at port was just not possible. The applicant has exported under free shipping bills, as the Customs Authority did not allow mentioning of Authorisation details on shipping bills without checking and verifying the goods physically. it is a matter of facts that the system is not in place to allow duty free imports where verification of consumption of duty free inputs by government agencies is not feasible. The committee was, however, of the views that in the emerging era of e-commerce, system needs to be redesigned to cover such types of transactions However, in this Advance Authorisations were issued without ascertaining the requirement of ६000, On the basis of documents i.e, ITR, Audited balance sheet and independent CA certificate, it is established that duty free raw materials imported by the applicant has been used for export purpose only, as domestic sale is negligible as compared to export figure. Therefore, taking into consideration the genuine hardship of not indicating Authorisation details on shipping bilis, the committee decided the following: i Export obligation shall be discharged against above mentioned two Advance Authorisations on the basis of Income Tax Return, Audited balance Sheet and CA certificate in addition to other documents, as prescribed in ANF-4F. il, Inputs shall be allowed as per SION for the resultant products exported. ii Shortfall, if any, shall be regularized in terms of Para 4.49 of HBP, 2015-2020. iv, This facility is allowed only for regularization of these two Authorisations No further Advance Authorisation shall be issued. (Action: Applicant/RA, Chennai) os 10

Case N o 11 Following cases were discussed at length. It was noted that vide PN 38 dated 28.11.2017, RAs have been empowered to allow revalidation of Authorisation/Scrip for equal period for which it was. in government agencies and due to that reason it could not be utilised. The comm these cases to RA concerned as mentioned below: the custody of ittee, therefore, decided to remand si | Name of the | Fileno. | dateof | Request in for "| Authorization | _ [hee No | Applicant | receiving | No. | Le Mis. Scantrans | 26/AM18 ~, 11.04.2017 Ta ofDFIA | 0410180135 ai.) Chena India Pvt. Lta 11.02.2015 | | Chennai | _ _ = ij 12 | Mis. Stylerite ; 247/AM18 | 17.05.2017 | Revalidation of Advance [oie dt. Mumbai | Optical Industires fa Authorization 28.01.2015 : 3 Mls. Laxmichand 222/AM18 13.06.2017! Revalidation of VKUY 0310618422 dt. | mens -_ | Dayabhai (Export) 28.01.2011 | Co. Pvt. Ltd, | | — | Mumba ---> mk ee 4 Mis. V. A. Global 228/AM18 19.07.2017

• Revalidation of Advance 0310681423 dt. Mumbai ॥ | Business Mumbai | “ss ! 10.02.2012 | | 5. ध्यान Rishab Apparel | 386/8018..: 31.07.2017 | Revalidation of Advance - » Mumbai | 1 Pvt. Ltd. Authorization ; di.29.12.15 Sia _ 6, Mis, Prama Export कक 17.07.2017; Request for Revalidation of | 0310794655 dt Mumbai | Mumbai । DFIA

• 18.03.2015

M/s La Opala 395/AM18 J man Revalidation of FPS है ४ Kolkata ' ।॒ | Limited ' authorisation dt.01.07.15 be Mis. Spark 4 433/AM18 | 18.08.2017 [som of Advance | 0510397760 at. sai | Electrodedes Pvt. : Authorization tame | Lid 9. | Mis. Finolex Cables oan 1 10.08.2017 : Revalidation of Advance 3110065886 dt. iia Ltd, Pune | Authorization no, ' 25.01.2016 10. | Mis R 5 Paper : 340/AM18 & | 08.08. a Revalidation of DFIA 0510393298 dt. CLA Noida _. ; Authorization 19.02.2015 & : ae dt. | 7 है i 12.12.2014 11. ts Mahindra & S24/AM18 ta me Revatidation of FMS ; 0319065426 df. Mumbai Mahindra Ltd | License Te 04.2016 12. | M/s, Uttam Galva 486/AM18 | 05.09.2017 | Regeust for Revalidation of | 0310801179 dt ' Mumbai : ; Steel Ltd Advance Authorization 17.12.2015 & 4 0310801178 “| । 17.12.2015 | 13. | M/S New Holland | , 22.09.2017 | Revalidation of two FMS 0510256862 | CLA, New | / Fiat (India ) Ltd. | Scrip license dt.22.01.10 and Le : 0510255345dt.31 | 12,2009 7 14 hs GDJD Exports: 520/AM18 = Revalidation of MEIS nal dt Chennai : 22.06.2017 ! (8 Shipping bills) 15. : Mis Meghmani i 17.10.2017 | Request for Revalidation of | 0819000997 dt. ne a Ltd., ' FPS authorization 28.07.2014 Gujarat । hs Mis. South India “कक तक | Ra Request for Revalidation of | 1719000194 dt. Panaji cashew 1 : VKGUY [pica 12.2014 पते Corporation, Panaji

147, Mis. South India = Pre Tos Request for | of } 171000122 dt. pe : | cashew | VKGUY 20.10.2014 | | Corporation, Panaji i 4

| | | 18, | Ws. PCL Oil & | S7SIAM18 | 01.11.2017 | Request for Revalidation of | 0510397740 at | CLA ॥ | Solvents Lid., New | | Advance License | 26.02.2016 | | | Delhi | i | 19 | Mis. PCL Oil & 576/AM18. | 2017 | Request for Revalidation of | 0510307480 ai ca! | Solvents Ltd., New | Advance License 02.02.2016 | | | व Delhi { + a | | | 2 | Wis. PCL Oil & S77/AM18 | 01.11.2017 | Request for Revalidation of | 0510397496 dt छह | | लिƒ Lid., New | Advance License 03.02.2016 | | elhi | (2 | Mis Ravi Foods Put. | S6/AM17 | 24.02.2016 1 Revalidation of DFIA 0910057477 di | Hyderabad | [ Ltd., Hyderabad H 3.9.2013 : ; 2 Mis Ravi Foods Pvt {saan} 24.02.2016 | Revalidation एक... 0910057492 di Hyderabad | | Lid., Hyderabad | | 4.9.2013 | | ॥ 23. | Mis Greenply 273iAMI7 14.04.2016 | Second Revalidation) अत Gla | ' Industries Ltd., New 12.02.2014, | | | Delhi | 0510382380 at. | 21.03.2014, | | | 0510383896 dt. | | | 09,04.2014 | | | 0510383899 at | | | 09.04.2014, | ै । 0510379242 dt | 1 | | 12.02.2014, fo 0510383895 dt. | | bs 09.04.2014 | | 24. | M/s Ceat Ltd., 235/AM17 7.04.2016 | Revalidation of Advance ive | 1 Mumbai Authorization 19.4.2014 हे ॥ 25. | Mis Aarti Drugs 268/AM 27.04 2016 | Second Revalidation of 0310788774 ct =| Mumbai! : | Ltd., Mumbai 7 Advance Authorization 05.09.2014 L | 26. [ Wis Cosme Films | 331/AMt 18.05.2016 | Revalidation of Advance 0310764452 | Mumbar | aLtd., Maharashtra L Authorization dated 3.1.2014 | | th—p— | mY [ 27. | Mis Usha Diaries 369/AM17 | 31.05.2016 | Revalidation of DFIA | 0510389478 | CLA | | | New delhi | | dated 8.7.2014 { | | 28. | Mis Karkariya 407/AM17 | 43.66.2016 | Revalidation of DFIA 0810126863 dt | Ahmedabad | Textiles esses | | 14.12.20 | Lae Lid oe — | किB Mis Hitech Blow | 400/AM17 - कह | Revalidation of DFIA a 710094101 Bangalore | | Moulders Priva ated 7.3.2013 | — |e Bangalore | | दिŸ — | 30. | Mls Fashion | 212/AM17 02.08.2016 | Revalidation of SHIS aes CLA ; _| Accories Gurgaon ed 19.65.2015 | | 31 /s Vedanta Ltd., | 696/AM17 |— EQDC revalidation & _ [alone dt CLA |

• New Delhi | Transferability of DFIA's 29.10.2014 | | (४ । Ms Vedanta Ltd — 14.12 me EODC revalidation & 0510391522 di aa | New Delhi Transferability of DFIA’s 09.10.2014 and 0510391948 dt, | _ 4; | 1211204 | | | st | M/s Honda S9/AM17 | 06.09.2016 | Revalidation of DEPB 0510392890 d | Motorcycle & ; 19.1.2015 | | Scooter India Pvt a नव __ ees 34, [४ Vadanta Ltd 708/AM17 | 06.09 at EODC, Revalidation "0510390629 T __ है है & Transferability of 076 dt.21.08.14 35 Mis Apex cant 385/AM17 [76 10.2016 | Revalidation of DFIA 7 0210094428 at ata _ Kolkata ५ 16.10.2006 हू

3. | Mis RR Kabel Lid, ; S7O/AMIT SRE | esa Revalidation of Advance हा dt Mumbai | » Mumbai | Authorization 17.03.2015 tee g Pe | | —_— _ 12

| आ. | MsOD | 838/AM17 | revalidation of 0718 a | | 10.11.2016 ! 1210009217 at, | Amritsar | | lonternationat, H | 24.02.2014 | __ किB | | | 38. | Mis Jindal Swa Lid | STANT छताउलह | Revalidation 2 आता हा जगा | | New Dethi | | saben ee 03.2015 |

• 39 | (Ws. Scantrans | 900/Am17 "| BAA 2076 | Request for Revalidation of | 0410159610 dt. | Ghemnai | | india Pvt 1 "eam ह __| OFA 17.10.2014 | iLi M/s. Fair Export S88/AMI7 | 20.12.2016 | Revalidation of DEPB | 0510381248 at, [A | (India) Pvt. Ltd j[os 03.2014 | | 41. | Mis GSP Crop [rear 17.04 mr Revalidation of Advance [3 0810135525 at Coimbatore “| । Sciences Pvt. Ltd., Authorization 22.06.2015 i || Ahmedabad | 42... 1 Mis Honda 1117/0017 | 31.07.2017 | Revalidation of DEPB Lamar CLA i i Motorcycle & | Authorization

• 08.08.2014 | Scooter india Pvt. | |

|. Bhumiraj Export | al 22.02.2017 | Revalidation of DEIA | |i dt. haa | L Mumbai _| ; 29.09.2014 | ae ail eal a . .

४ 144. Bhumiraj Export 1288/AM17 | 22.02.2017 | Revalidation of DFIA al 0310789596 dt aa i है Mumbai _ | 24.09.2014

| | 45. | M/s National Steel 7 1255/AM17__ rae Revalidation of Status 5610001113 dt. | indore | &Agro Industries | | Holder Incentive Scrip 20.09.2014 and | | |. tg | 5610001074 dt L | r } Feiss .

• Mls Hindatco dl छक्का Revalidation of FMS 1310031357 dt. ind Industries Limited Authorization | 09.02.2010 | Mls Hindalco 1271/AM17 ( 09.03.2017 | Revalidation of VRUY [Botan dt. | Jaipur ' Industries Limited | Authorization 29.07.2009 | ही Mis Hindalco i 09.03 a Revalidation of VKUY ' 02100140396 at a Industries Limited | Authorization aE 03.2010 49, | Mls Hindalco 4272/AM17 ~ | 0963.2017 Revalidation of VKUY 0410112525 dt Chennai | “isi (पाक हे ____| Authorization 22.3.2010 _ 1

50. | M/s Hindalco eA हि§ 09.03.2017 | Revalidation of VKUY | 0910038866 dt. | Hyderabad | Industries Limited j | Authorization 07.08.2009 “51. | MisHindalco कक | 09.03.2017 * Revalidation of VKUY 0240140301 «| Kolkata _ | on Limited Authorization | 30.03.2010 | Ls 53. | Mls Hindalco iG ae eer Revalidation of VKUY 2910010281 dt. | Moradabad .+ “TR Limited ' Authorization 14.10.2009 |
51. | M/s Hindalco ' 1274/AM17 | 09.03.2017 [Rein of VKUY कथा हक Chennai | Industries Limited Authorization 05.03.2010 | | 54, हा SMI Coated \O43/AM17 | 24.07.2017; Revalidation of Advance 0310792321 di ps Product Private Authorization 23.12.2014 | Ltd., Mumbai f= ah i i | 55. 1 M/s SMI Coated er 30.05. = Revalidation of nea} 0310786746 at. Mumbai | : Product Private : Authorization 14.07.2014 | Lid., Mumbai i [ |
52. | M/sRMG Polyvinyl |78/AMI7 | 09.08.2017 + Rovaidaton Advance _ fer at | CLA | India Ltd., New Authorization 16.06.2011 i Dethi a ze!
53. | M/s Siria Impex fw] 24.08.2017} Revalidation of Advance | 0510351414 DT CLA | (P) Ltd., New Delhi |ec 1La 2013 Siria | ' 58. | Mis Indian है +1 5/AM17 | aia Revalidation Advance 0610010574 dt |e | Overseas , Kanpur j| Rihotzaton ! 12.04.2006 “59. “| is Daman; 160/AM18* 28.07.2017 | Revalidation of Advance | ean dt. | Mumbai | | Polythread Ltd Authorization 07.09.2015 i हि§ | Daman _ :

| 80. | Mis. Anvil Cable 261/AM18 | 03.10.2017 | Revalidation of Advance | 0210206050 at, | Kolkata | । | Put 16, Kolkata | | | Authorization 06.08.2015 | | 61. | Mis. Aym Siex ता =| 434/AM18 छि}छक्त | Revalidation of Advance | oaiaevees7 at twumbar = | Lid., Dadar Nagar | | Authorization 01.12.2015 | — | Havel ft रु वि लिƒ नी शि‡शि‡नि‰यय 6 Ms. Tata | 357/AM18 छक्का | | Revalidation of 18 MEIS- + 5619002490 dt. | indore international Lid, | Authorization | 15.09.2015, | indore | 5619002495 dt. | | 15.09.2015, | | 5619002494 di, | | | | 15.09.2015, | | 5619002489 dt. | i | | 15.09.2045, | | | | 40.09.2015, 5619002485 dt. | । 5619002493 di, | : ५ 15.09.2015, 5619002512 dt.16.09.2015, | | 5619002521 dt 21.09.2015, | | 5619002585 dt | 08.10.2015 | 5619002579 dt. ; 06.10.2015, 5619002595 dt 09.10.2015, | 5649002604 dt 14.10.2015, | 5619002612 dt. | | 16.10.2015, | | i 5619002644 dt, 02.11.2015, 5619002652 at. 04.11.2015, 5619002681 dt, 48.11.2015, 5619002712 dt, 24.11.2015, | 5619002737 dt. | | __[ __| 04.12.2015 | | or ( ऑऑ_ः The meeting ended with a vote of thanks to the Chair. 30003 IIe a 14