RoDTEP – Goods not totally ‘restricted’ if appropriate quota allows export subject to certain approval

The Bombay High Court has reiterated that benefit of RoDTEP would be available on export of white refined sugar at a time when export of sugar was restricted.

The Department had denied the benefit relying upon Notification No. 10/2015-20, dated 24 May 2022 which stated the Export Policy of sugar as ‘restricted’, but permitted export of restricted sugar under specific permission from Directorate of Sugar, Department of Food and Public Distribution. Admittedly, RoDTEP benefit is not available on export of restricted goods. 

Allowing the benefit, the Court in Rika Global Impex Limited v. Union of India [TS 98 HC 2026 (BOM)] observed that sugar could not be considered to be a totally restricted/prohibited item for export at the material time so as to deprive the benefit of RoDTEP, as the notification permitted export of appropriate quota as may be approved by the Directorate of Sugar. 

According to the Tribunal, in such circumstances, benefits of the scheme cannot be denied to the exporters, who acted upon the scheme and undertook exports which are conducive to national interest. Gujarat High Court’s decisions in the cases Shree Renuka Sugars Ltd. and Satyendra Packaging Ltd., were also relied upon.