DGFT Committee Minutes

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Minutes of NC-V Meeting held on 22.04.2010

The Meeting No. 04/AM-11 for the licensing year 2010-11 to consider the cases under Duty Exemption Schemes (Chapter-4) held on 22.04.2010 in Room No.213 of DGFT under the Chairmanship of Shri A.K.Singh, Jt. DGFT. The following officers were present: - Sl. No Name of the representatives & their designation Department 1. Sh. R.A. Lal, Director R.O, TC, Noida 2. Sh. Ashok Kumar Arora, Dy.DGFT DGFT 3. Sh. Kuldeep Singh, Asstt. Director MSME 4. Sh. Pradip Kumar, F.T.D.O DGFT

(TEXTILES AND LEATHER ITEMS)

MEETING NUMBER : 4/84-ALC3/2010 MEETING DATE : 22.04.2010

Case No.:2/44/84-ALC3/2009

Party Name:M.M.EXPORTS (INDIA) Meet No/Date:4/84-ALC3/2010 Status: Withdrawn

PRO version 1 Case No.: / /8 C3/ 009 a ty Na e: . . O S ( N ) eet No/ ate: /8 C3/ 0 0 22.04.2010 Status: W t d aw HQ File :01/84/050/00235/AM10/ RLA File :05/24/040/00447/AM10/ Lic.No/Date:0510256548 18.01.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that firm vide their letter dated 25.02.2010 have requested to cancel the advance authorization in question and surrender the same. In view of this Committee decided to withdraw this case from agenda.

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Case No.:2/52/84-ALC3/2009

Party Name: VIRAJ SYNTEX (P) LTD. 22.04.2010 Status: Rejected HQ File :01/84/050/00283/AM10/ RLA File :06/24/040/00044/AM10/ Lic.No/Date:0610017134 29.01.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have failed to submit their reply to DGFT letter dated 12.04.2010, in absence of this it is not possible to fix the norms. Hence, Committee was constrained to reject the case.

                      RLA may take suitable consequential action accordingly.

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Case No.:3/4/84-ALC3/2010

Party Name:PASHUPATI POLYTEX PVT. LTD. 22.04.2010 Status: Rejected HQ File :01/84/050/00014/AM11/ RLA File :61/24/040/00050/AM10/ Lic.No/Date:6110000389 04.02.2010

that in this case import item is scraps and firm have neither given manufacturing process chart nor stage-wise wastage alongwith justification thereof. Hence, Committee was constrained to reject the case. Further, in order to know whether importability of scraps is allowed under Para 4.7 or not under Duty Exemption Scheme, hence decided to seek comments/views of Policy Division {Jt. DGFT (TM)} as well as Import Policy Division.

PRO version RLA may take suitable consequential action accordingly.

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Case No.:4/52/84-ALC3/2009

Party Name:M.M.EXPORTS (INDIA) 22.04.2010 Status: Deferred HQ File :01/84/050/00285/AM10/ RLA File :05/24/040/00475/AM10/ Lic.No/Date:0510258073 09.02.2010 Defer Date: 20.05.2010 that case is under examination of DC (MSME). It was decided to defer the case for re-listing on 20.05.2010.

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Case No.:2/48/84-ALC3/2009

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 22.04.2010 Status: Approved HQ File :01/84/050/00261/AM10/ RLA File :05/24/040/00471/AM10/ Lic.No/Date:0510258621 16.02.2010

Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical authorities present in the meeting decided to ratify the Annual Advance authorization issued in this case as per written comments of DC (MSME) conveyed vide their U.O No. 37(5)/06/2010-11/Hosy. dated 21.04.2010 as detailed below: - Export item Import item Quantity allowed Ladies Camisole in 100% 100% rayon printed 1.50 Sq mtrs/Pc

PRO version rayon printed Woven fabric (Style No.20100) Woven fabric, GSM- 76+/-10% Ladies Camisole in 100% rayon printed Woven fabric (Style No.EW10111) 100% rayon printed Woven fabric, GSM- 76+/-10% 2.74 Sq mtrs/Pc The GSM should match in both import and export. The R.A. shall be advised to take necessary action subject to compliance of other usual conditions.

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Case No.:4/48/84-ALC3/2009

Party Name:FASHION KINGDUM 22.04.2010 Status: Approved HQ File :01/84/050/00263/AM10/ RLA File :04/24/040/00297/AM10/ Lic.No/Date:0410111602 16.02.2010

that applicant firm have neither forwarded calculation sheet nor CAD/CAM/Laymarker/Measurement/Style No. and justification for asking Qty. higher than SION. In view of this, Committee in consultation with the representatives of technical authorities present in the meeting decided to allow the item of import @ 2.15 Sq mtrs./Pc taking cue from SION, J-175. The GSM should match in both import and export.

PRO version 7

Case No.:1/4/84-ALC3/2010

Party Name:SADHANA FASHIONS 22.04.2010 Status: Approved HQ File :01/84/050/00012/AM11/ RLA File :33/24/040/00014/AM10/ Lic.No/Date:3310014877 17.02.2010

Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing the item of import on net to net basis with accountability clause.

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Case No.:2/4/84-ALC3/2010

Party Name:BOMBAY RAYON FASHIONS LIMITED 22.04.2010 Status: Deferred HQ File :01/84/050/00013/AM11/ RLA File :03/94/040/01028/AM10/ Lic.No/Date:0310561834 24.02.2010 Defer Date:20.05.2010 that case is under examination of DC (MSME). It was decided to defer the case for re-listing on 20.05.2010.

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Case No.:6/52/84-ALC3/2009

Party Name:LOYAL TEXTILE MILLS LTD 22.04.2010 Status: Deferred HQ File :01/84/050/00287/AM10/ RLA File :35/24/040/00037/AM10/ Lic.No/Date:3510029331 02.03.2010 Defer Date: 20.05.2010 that copy of application has not been received in this case. It was decided to defer the case for re-listing on 20.05.2010.

PRO version

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Case No.:7/52/84-ALC3/2009

Party Name:A.S.MARIMUTHU 22.04.2010 Status: Rejected HQ File :01/84/050/00288/AM10/ RLA File :35/24/040/00039/AM10/ Lic.No/Date:3510029336 02.03.2010

that applicant firm have failed to submit their reply to DGFT letter dated 09.04.2010. In absence of this, it is not possible to fix the norms. Hence, Committee was constrained to reject the case.

                      RLA may take suitable consequential action accordingly.

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Case No.:1/52/84-ALC3/2009

Party Name:SHAHI EXPORTS PVT. LTD. 22.04.2010 Status: Deferred HQ File :01/84/050/00282/AM10/ RLA File :05/24/040/00515/AM10/ Lic.No/Date:0510260594 16.03.2010 Defer Date: 20.05.2010 that copy of application has not been received in this case. It was decided to defer the case for re-listing on 20.05.2010.

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Case No.:10/52/84-ALC3/2009

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 22.04.2010 Status: Deferred HQ File :01/84/050/00291/AM10/ RLA File :05/24/040/00525/AM10/ Lic.No/Date:0510260648 17.03.2010 Defer Date: 20.05.2010 that copy of application has not been received in this case. It was decided to defer the case for re-listing on 20.05.2010.

PRO version

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Case No.:11/52/84-ALC3/2009

Party Name:ORIENT FASHION EXPORTS(INDIA) PVT.LTD. 22.04.2010 Status: Approved HQ File :01/84/050/00292/AM10/ RLA File :05/24/040/00526/AM10/ Lic.No/Date:0510260649 17.03.2010

Decision: The Committee considered the case as per agenda and in consultation with the representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case as detailed below: - S.No Export item Import item Quantity allowed 1 Infant Top Style No. 764096/768450) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 6153 Sq mtrs. 2 Infant Top Style No. 764081) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 5808 Sq mtrs. 3 Infant Dress Style No. 764101) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 12289 Sq mtrs. 4 Infant Diaper Style No. 764101) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 3429 Sq mtrs. 5 Infant Dress Style No. 764082/768294/776699) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 12974 Sq mtrs.

PRO version 6 Infant Diaper Style No. 764082/768294/776699) 100% cotton printed superfine twill woven fabric, GSM-90+/-10% 4445 Sq mtrs. The GSM should match in import & Export.

Case No.:4/4/84-ALC3/2010

Party Name:JIWANRAM SHEODUTTRAI INDUSTRIES PVT.LTD. 22.04.2010 Status: Approved HQ File :01/84/050/00015/AM11/ RLA File :02/24/040/00247/AM10/ Lic.No/Date:0210140747 09.04.2010

that applicant firm have not given justification for higher quantitative requirement than that allowed in relevant SION. Therefore, Committee after deliberations in consultation with the representatives of technical authorities present in the meeting decided to ratify the norms against the advance authorization issued in this case taking cue from Policy Circular No. 34/(RE-07)/2004-2009 dated 24th March, 2008 as detailed below: - (A) Against export item No. 1 (i) The import item No. 1 may be allowed @ 4.05 Sq mtrs./Pc taking cue from SION, J-166 read

PRO version 14 with Policy Circular No. 34/(RE-07)/2004-2009 dated 24th March, 2008. (ii) The import item from S.No. 2 to 6 may be allowed as applied by the firm. (B) Against export item No. 2 (i) The import item No. 7 may be allowed @ 4.05 Sq mtrs./Pc taking cue from SION, J-166 read with Policy Circular No. 34/(RE-07)/2004-2009 dated 24th March, 2008. (ii) The import item from S.No. 8 to 12 may be allowed as applied by the firm. (C) Against export item No. 3 (i) The import item No. 13 may be allowed @ 4.05 Sq mtrs./Pc taking cue from SION, J-166 read with Policy Circular No. 34/(RE-07)/2004-2009 dated 24th March, 2008. (ii) The import item from S.No. 14 to 18 may be allowed as applied by the firm. (D) Against export item No. 4 (i) The import item No. 19 may be allowed @ 4.05 Sq mtrs./Pc taking cue from SION, J-166 read with Policy Circular No. 34/(RE-07)/2004-2009 dated 24th March, 2008. (ii) The import item from S.No. 20 to 24 may be allowed as applied by the firm. The GSM should match in import & Export.

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Case No.:5/4/84-ALC3/2010

Party Name:MERIDIAN APPARELS LIMITED, 22.04.2010 Status: Approved HQ File :01/84/050/00016/AM11/ RLA File :04/24/040/00002/AM11/ Lic.No/Date:0410113069 12.04.2010

Decision: The Committee considered the case as per agenda alongwith other relevant papers and after deliberations in consultation with the representatives of technical authorities present in the meeting decided to ratify the norms against the advance authorization issued in this case as per SION, J-286 or as applied by the firm whichever is lower. The GSM should match in import & Export.

PRO version

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Case No.:6/4/84-ALC3/2010

Party Name:MEENAKSHI INDIA LTD 22.04.2010 Status: Deferred HQ File :01/84/050/00017/AM11/ RLA File :04/24/040/00003/AM11/ Lic.No/Date:0410113089 12.04.2010 Defer Date: 20.05.2010 that copy of application has not been received in this case. It was decided to defer the case for re-listing on 20.05.2010.

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Case No.:7/4/84-ALC3/2010

Party Name:LUCKY GOLDSTAR COMPANY LIMITED. 22.04.2010 Status: Withdrawn HQ File :01/84/050/00018/AM11/ RLA File :02/24/040/00248/AM10/ Lic.No/Date:0210140874 13.04.2010

that export item is Silk fabrics and import item is Thrown Silk Yarn (Mulberry Raw silk twisted yarn in gummed form). Therefore, Committee decided to withdraw this case from agenda and to advise R.A to decide the case as per SION, J-123.

Manually generated agenda cases

Case No. 27 M/s Chandramukhi Impex Pvt. Ltd., Kolkata

PRO version NC04/11 dt. 22.04.2010 F.NO.1/84/50/395/AM07 -DES-V Re-fixation of input output norms against Advance Authorization No. 0210095736
dt. 23.11.2006. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that this case was earlier decided by ALC in its meeting held on 28.06.2007 on the basis of written comments of TC, Mumbai conveyed vide their letter dated 25.05.2007 with size-wise specification i.e complete measurement details of export item. Now, firm have requested for deletion of size-wise specification mentioned on the export item, as exports were completed prior to the fixation of norms in this case. The Committee also felt that size-wise specification mentioned on the export item is based on the average size of the export item, hence, it would be difficult to match for each size of export product. In view of this Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to delete the size-wise specification mentioned on the export item in this case without any change in the quantitative norms. R.A may issue EODC accordingly.

Case No. 28 M/s Kumari Overseas Pvt. Ltd., Bangalore F.NO.1/84/162/295/AM10 -DES-V Re-fixation of input output norms against Advance Authorization No. 0710066070
dt. 21.07.2009. Decision: The Committee considered the case as per agenda and observed that this case was earlier cleared by NC in its meeting held on 17.09.2009 by allowing 2.5% wastage. Now, firm vide their letter dated 13.04.2010 have submitted the complete manufacturing process involved in this case. The committee went through the details submitted by the firm. As per manufacturing process submitted, it was observed that in this case raw silk yarn is processed in various stages for the manufacture of Twisted Silk Yarn further for making of thrown silk yarn. Since the import item is gummed & to manufacture yarn from raw silk, 34% wastage is justified. Therefore, Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting decided to ratify the Advance authorization issued in this case by allowing 34% wastage instead of 2.5% wastage allowed earlier in this case. The description of export and import item may be amended accordingly as requested by the firm.

PRO version

Case No. 29 M/s Gupta Enterprises, Chennai F.NO.1/85/50/13/AM08 -DES-V Ratification of input output norms against Advance Authorization No. 0410089135
dt. 25.04.2007. Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided to link the similar case file wherein norms have been fixed for similar export import item and defer the case for re-listing on 20.05.2010.

Case No. 30 M/s Koshambh Multithred Pvt. Ltd., Baroda F.NO.1/84/50/395/AM07 -DES-V Clarification regarding entitlement of yarn dyed fabrics as input against export of printed fabrics under SION, J-325. Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided to call the applicant firm for personal hearing before Norms Committee meeting to be held on 20.05.2010 alongwith sample & complete supporting documents and technical person to explain the case.

PRO version

The case stands deferred for re-listing on 20.05.2010.

Case No. 31 M/s Narottamdas Exports, Mumbai F.NO.1/84/50/435/AM08 -DES-V Re-fixation of input output norms against Advance Authorization No. 0310434637
dt. 02.07.2007. Decision: The Committee considered the case as per agenda and observed that this case was earlier cleared by NC in its meeting held on 07.02.2008 as per written comments of DC (MSME) conveyed vide their U.O dated 05.02.2008. Now, firm have requested for enhancement in the Qty. of input against the export item No. 1 as applied by them. The Committee observed that against export item No. 2 i.e Ladies jacket, input norms were fixed @ 3.20 Sq mtrs./Pc whereas against the export item No. 1 i.e Ladies Trousers, input norms fixed @ 2.80 Sq mtrs./Pc. The

PRO version Committee also perused the written comments of TC, Mumbai conveyed vide their letter dated 01.10.2007 recommending input norms for both the export items @ 3.2004 Sq mtrs./Pc. Therefore, Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to re-fix the norms as detailed below in partial modification of its earlier decision :- S. No Export Product Import Item Qty. allowed 1 Ladies Trousers Technical ring spun Streaky 75% cotton, 23% polyester, 2% spandex denim, GSM-305+/- 10% 3.2004 Sq. Mtrs./Pc 2 Ladies Jacket Technical ring spun Streaky 75% cotton, 23% polyester, 2% spandex denim, GSM-305+/- 10% 3.2004 Sq. Mtrs./Pc The GSM should match in both import and export.

Case No. 32 Reference received from PC-IV(B) Section F.NO.1/84/162/15/AM11 -DES-V Suspension of DEPB benefit on Cotton Yarn with immediate effect for a period of six months till 2010. Therefore, Committee after detailed deliberations in consultation with representatives of technical authorities present in the meeting decided to agree the proposal of M/o Textiles for suspension of DEPB benefit on Cotton Yarn with immediate effect for a period of six months till 2010. It was also decided to refer back the matter to PC-IV (B) for necessary action at their end.

PRO version

Case No. 33 M/s Mallow International, Karur F.NO.1/84/50/410/AM07 -DES-V Re-fixation of input output norms against Advance Authorization No. 3210034302
dt. 30.11.2006. Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided that a team comprising officers of DGFT, DIPP, DC (MSME) excluding Sh. R.A.Lal, Director, R.O of TC, Noida will visit the unit of the applicant firm to study the manufacturing process and submit its report to the Committee for taking final view in this case. Hence, case stands deferred for re-listing on submission of report.

                    Firm may be informed accordingly.

Case No. 34 M/s Chelsea Mills, Gurgaon F.NO.1/84/50/473/AM09 -DES-V Re-fixation of input output norms against Advance Authorization No. 0510238326
dt. 19.03.2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. M.K.Jain, Proprietor, who appeared for personal hearing in this case. He explained the case alongwith sample and relevant documents pertaining to this case. It was observed that earlier NC had allowed the input @ 2.90 Sq mtrs./Pc against export item No. 1 but due to revision of style No. in terms of description, a belt was added later. The

PRO version Committee also went through the sample and CAD, CAM & measurement etc submitted in this case and found that with the addition of belt in the export item, enhancement in quantitative requirement of input is justified. Therefore, Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to allow the import item No.1 against export item No. 1 @ 2.98 Sq mtrs./Pc as against earlier 2.90 Sq mtrs./Pc in this case.

Case No. 35 M/s Chelsea Mills, Gurgaon F.NO.1/84/50/443/AM09 -DES-V Re-fixation of input output norms against Advance Authorization No. 0510235454
dt. 30.01.2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. M.K.Jain, Proprietor, who appeared for personal hearing in this case. He explained the case alongwith sample and relevant documents pertaining to this case. It was observed that due to change in the buyer’s order in bigger sizes, the average consumption of inputs has been enhanced in this case. The Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to re-fix the norms as detailed below in partial modification of its earlier decision:- S. No Export item No. Import item No. Description in earlier allowed Qty. allowed 1 1 3 99% cotton 1% spandex stretch denim fabric, GSM- 285+/-10% 0.32 Sq mtrs./Pc 2 3 6 99% cotton 1% spandex 1.25 Sq mtrs./Pc

PRO version stretch denim fabric, GSM- 285+/-10% The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 36 M/s Chelsea Mills, Gurgaon F.NO.1/84/50/465/AM05 -DES-V Re-fixation of input output norms against Advance Authorization No. 0510144261
dt. 30.11.2004. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. M.K.Jain, Proprietor, who appeared for personal hearing in this case. He explained the case alongwith sample and relevant documents pertaining to this case. It was observed that due to change in the buyer’s order in terms of specification of export item i.e addition of interlining in the belt, waist band, pocket flaps welt pocket and loops, the average consumption of inputs has been enhanced in this case. The Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to re-fix the norms as detailed below in partial modification of its earlier decision:- S.No Export item No. Import item No. Description in earlier allowed Qty. allowed 1 1 2 Polyester interlining 0.42 Sq mtrs./Pc 2 1 3 Snap Fasteners 4 Sets/Pc 3 1 7 Elastic 1.38 mtrs./Pc The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 37 M/s Indo count Industries Ltd., Mumbai

PRO version F.NO.1/80/(84)/50/69/AM08 -DES-V Ratification of input output norms against Advance Authorization No. 0310428456
dt. 01.05.2007. Decision: The Committee considered the case as per agenda alongwith other relevant papers and decided to call the applicant firm for personal hearing before Norms Committee meeting to be held on 20.05.2010 alongwith sample & complete supporting documents and technical person to explain the case.

The case stands deferred for re-listing on 20.05.2010.

Case No. 38 M/s Chelsea Mills, Gurgaon F.NO.1/84/50/600/AM08 -DES-V Re-fixation of input output norms against Advance Authorization No. 0510205902
dt. 06.07.2007. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. M.K.Jain, Proprietor, who appeared for personal hearing in this case. He explained the case alongwith sample and relevant documents pertaining to this case. It was observed that against export item No. 1 and 2 norms were not fixed by NC for the import item No. 4 and 13 i.e Zip Fasteners. In view of this Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to fix the norms as detailed below: - S.No Export item No. Import item No. Description in earlier allowed Qty. allowed 1 1 4 Zip Fasteners 5732 Nos. (@ 1 No./Pc) 2 2 12 Zip Fasteners 9690 Nos. (@ 1 No./Pc)

PRO version The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Outside agenda cases

Case No. 1 M/s Chelsea Mills, Gurgaon F.NO.1/84/50/57/AM10 -DES-V Re-fixation of input output norms against Advance Authorization No. 0510244698
dt. 29.06.2009. Decision: The Committee considered the case as per agenda alongwith other relevant papers and heard Sh. M.K.Jain, Proprietor, who appeared for personal hearing in this case. He explained the case alongwith sample and relevant documents pertaining to this case. It was observed that norms fixed for elastic are on lower side against all export items in this case. In view of this Committee after deliberations in consultation with representatives of technical authorities present in the meeting decided to fix the norms as detailed below: - S.No Export item No. Import item No. Description in earlier allowed Qty. allowed 1 1 4 Elastic of relevant width 0.55 Mts./Pc 2 2 10 Elastic of relevant width 0.95 Mts./Pc 3

17 Elastic of relevant width 0.95 Mts./Pc 4

25 Elastic of relevant width 0.95 Mts./Pc 5

30 Elastic of relevant width 0.95 Mts./Pc

PRO version The R.A shall be advised to take necessary action subject to compliance of other usual conditions.

Case No. 2 M/s Richa & Company, New Delhi F.NO.1/84/162/34/AM11 -DES-V Request for amendment in style No. of export product against advance authorization No. 0510258972 dated 19.02.2010 – reg. Decision: The Committee considered the case as per agenda alongwith other relevant papers and observed that applicant firm have requested for amendment in the style No. from 3W 1066 to 3W 1098 without change in the Qty. of input output against the advance authorization in question due change in the buyers orders. The Committee after deliberations decided to amend the style No. from 3W 1066 to 3W 1098 as requested by the firm. Accordingly, it was decided to issue suitable instructions to R.A for necessary action. Firm may be informed accordingly.

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