{"id":252196,"date":"2011-05-18T00:00:00","date_gmt":"2011-05-17T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/lgw-limited-vs-union-of-india-others-on-18-may-2011"},"modified":"2016-03-17T06:53:09","modified_gmt":"2016-03-17T01:23:09","slug":"lgw-limited-vs-union-of-india-others-on-18-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/lgw-limited-vs-union-of-india-others-on-18-may-2011","title":{"rendered":"Lgw Limited vs Union Of India &amp; Others on 18 May, 2011"},"content":{"rendered":"<div class=\"docsource_main\">Calcutta High Court<\/div>\n<div class=\"doc_title\">Lgw Limited vs Union Of India &amp; Others on 18 May, 2011<\/div>\n<div class=\"doc_author\">Author: Indira Banerjee<\/div>\n<pre id=\"pre_1\">                     WP No. 503 of 2011\n              IN THE HIGH COURT AT CALCUTTA\n             CONSTITUTIONAL WRIT JURISDICTION\n                       ORIGINAL SIDE\n\n\n                                                      LGW Limited\n                                                            Versus\n                                           Union of India &amp; Others\n\n\n\nBefore:\nThe Hon'ble Justice Indira Banerjee\nDate: 18th May 2011\n\n                                                       Appearance:\n                                Mr. S. N. Mookherjee, Sr. Advocate\n                                   Mr. Pradip Ghosh, Sr. Advocate\n                                     Mr. Arunava Ghosh, Advocate\n                                           appear for the petitioner\n                                      Mr. P. K. Tarafdar, Advocate\n                                        Mr. I. Dasgupta, Advocate\n                                       appear for the respondents<\/pre>\n<p id=\"p_1\">      In exercise of power under <a href=\"\/doc\/1741934\/\" id=\"a_1\">Section 5<\/a> of the Foreign Trade<\/p>\n<p>Development and <a href=\"\/doc\/1489134\/\" id=\"a_1\">Regulation Act<\/a>, 1992 (hereinafter referred to as<\/p>\n<p>&#8220;<a href=\"\/doc\/21251996\/\" id=\"a_2\">Foreign Trade Act<\/a>&#8220;) the Central Government has formulated<\/p>\n<p>Foreign Trade Policy for the years 2009-2014. With a view to<\/p>\n<p>facilitate and encourage imports and exports, the foreign trade<\/p>\n<p>policy contains duty exemption and duty remission schemes, one of<\/p>\n<p>which is the Duty Entitlement Pass Books Scheme (DEPB Scheme).<br \/>\n<span class=\"hidden_text\" id=\"span_1\">                                  2<\/span><\/p>\n<p id=\"p_1\">       Under the DEPB Scheme, customs duty paid on imported<\/p>\n<p>inputs used in a product which is later exported, is given duty<\/p>\n<p>credit upon export. Imported inputs on cotton yarn was earlier<\/p>\n<p>entitled to the benefit of the DEPB Scheme. By a notification being<\/p>\n<p>Public Notice No. 57\/2009-2014 New Delhi dated 21st April 2010<\/p>\n<p>issued by the Directorate General of Foreign Trade, the schedule of<\/p>\n<p>DEPB rates has been amended and the benefit of the DEPB<\/p>\n<p>Scheme withdrawn in respect of cotton yarn.\n<\/p>\n<p id=\"p_2\">       A further Public Notice No. 45(RE-2010)-2009-2014 dated<\/p>\n<p>21st March 2011 has been issued which inter alia provides that<\/p>\n<p>export of cotton shall not be entitled for DEPB benefit even under<\/p>\n<p>DEPB entry serial 22c and 22d of the product group &#8220;misc.&#8221; with<\/p>\n<p>respect to shipments made on or after 21st April 2010.<\/p>\n<p id=\"p_3\">       Prima facie, the DEPB benefit has been taken away with<\/p>\n<p>retrospective effect by notification and\/or government order, which<\/p>\n<p>is not permissible in law. The petitioner and other similar<\/p>\n<p>circumstanced exporters and importers have already availed of the<\/p>\n<p>DEPB benefit. Paragraph 3 of the notification dated 31st March<\/p>\n<p>2011 is set out hereinbelow for convenience:\n<\/p>\n<blockquote id=\"blockquote_1\"><p>                    &#8220;Benefit under DEPB scheme encourages export<br \/>\n             of concerned commodity. Hence when the intention of<br \/>\n<span class=\"hidden_text\" id=\"span_1\">                                        3<\/span><\/p>\n<p>                the Government is not to encourage exports of specific<br \/>\n                commodity, DEPB benefit on such a commodity would<br \/>\n                be contradictory to its intention. Accordingly, this Public<br \/>\n                Notice clarifies that DEPB benefit on export of cotton<br \/>\n                shall not be available. DEPB benefit on export of cotton<br \/>\n                yarn was withdrawn with effect from 21.4.2010,<br \/>\n                therefore, DEPB benefit on cotton (the basic raw<br \/>\n                material of cotton yarn) has been disallowed for<br \/>\n                exports     made       from      21.4.2010      onwards.&#8221;<\/p><\/blockquote>\n<p id=\"p_4\">\n<p id=\"p_5\">        Prima facie the Directorate General of Foreign Trade has<\/p>\n<p>proceeded on the basis that withdrawal of DEPB benefit on cotton<\/p>\n<p>is consequential to the withdrawal of DEPB benefit on export of<\/p>\n<p>cotton yarn with effect from 21st April 2010. As indicated in<\/p>\n<p>notification itself cotton is the basic raw material for cotton yarn.<\/p>\n<p>Cotton and cotton yarn are not the same.\n<\/p>\n<p id=\"p_6\">        Prima facie benefits already availed by the petitioner under<\/p>\n<p>the DEPB scheme cannot be withdrawn with retrospective effect.<\/p>\n<p>There   will,   therefore,   be   an       interim   order   restraining   the<\/p>\n<p>respondents from giving any effect and\/or further effect to the<\/p>\n<p>impugned communication dated 25th April 2011. The respondents<\/p>\n<p>are restrained from giving further effect to the impugned Public<\/p>\n<p>Notice dated 31st March 2011 in so far as the petitioner is<\/p>\n<p>concerned. It is made clear that this interim order will not prevent<\/p>\n<p>the Directorate General of Foreign Trade from issuing a fresh<br \/>\n<span class=\"hidden_text\" id=\"span_2\">                                     4<\/span><\/p>\n<p>notification withdrawing the DEPB benefits in respect of cotton or<\/p>\n<p>any other item, in accordance with law, with prospective effect.<\/p>\n<p id=\"p_7\">          Affidavit-in-opposition be filed within three weeks after<\/p>\n<p>ensuing summer vacation; reply thereto, if any, within a week<\/p>\n<p>thereafter. The matter will appear for hearing on 7th July 2011. The<\/p>\n<p>interim order shall continue till 31st July 2011 or until further<\/p>\n<p>order whichever is earlier.\n<\/p>\n<p id=\"p_8\">          All parties are to act on a signed photocopy of this order on<\/p>\n<p>the usual undertakings.\n<\/p>\n<p id=\"p_9\">\n<p id=\"p_10\">                                                   (Indira Banerjee, J.)<\/p>\n<p>R. Bose<br \/>\nAR(CR)\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Calcutta High Court Lgw Limited vs Union Of India &amp; Others on 18 May, 2011 Author: Indira Banerjee WP No. 503 of 2011 IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE LGW Limited Versus Union of India &amp; Others Before: The Hon&#8217;ble Justice Indira Banerjee Date: 18th May 2011 Appearance: Mr. S. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,8],"tags":[],"class_list":["post-252196","post","type-post","status-publish","format-standard","hentry","category-calcutta-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lgw Limited vs Union Of India &amp; Others on 18 May, 2011 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/lgw-limited-vs-union-of-india-others-on-18-may-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lgw Limited vs Union Of India &amp; 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