2019 (2) TMI 1975 - HC - Customs

Rejection of petitioner s claim for duty credit scrips under the Incremental Export Incentivisation Scheme (IEIS), on an annual basis - interpretation of the Notification no. 43 dated 25.09.2013 - petitioner contends that the benefit is not limited to only ₹1 crore but the incentive above that amount is required to bear greater scrutiny - HELD THAT - The petitioner has already received the benefit to the extent of ₹1 crore and now claims the benefit for the remaining amount of ₹28.17 crores. In view of the decision in M/s Weldone Exim Pvt. Ltd. 2018 (4) TMI 979 - DELHI HIGH COURT , the petitioner would be entitled to the said amount, subject to the respondents carrying out greater scrutiny. The order dated 30.01.2018 passed by respondent no.3 (Addl. DGFT), rejecting the petitioner s appeal is also set aside. The respondents are directed to re-examine the petitioners request for export incentives in terms of the decision of the Division Bench of this Court in M/s Weldone Exim Pvt. Ltd. - Petition allowed by way of remand.

Summary

Issues:
Impugning an order rejecting duty credit scrips under the Incremental Export Incentivisation Scheme (IEIS) for exports made during 2013-14.
Interpretation of Notification no.43 dated 25.09.2013 limiting the incentive under IEIS to ?1 crore.
Dispute over the incentive limit and the need for greater scrutiny above ?1 crore.
Applicability of the Division Bench decision in M/s Weldone Exim Pvt. Ltd. v. DGFT & Anr.
Claiming the benefit for the remaining amount after receiving ?1 crore.
Requirement of further scrutiny as per Foreign Trade Policy.

Analysis:
The petitioner challenged an order rejecting duty credit scrips under the IEIS for exports in 2013-14, claiming ?29.17 crores but restricted to ?1 crore based on the interpretation of Notification no.43. The petitioner argued the incentive is not limited to ?1 crore, supported by a Division Bench decision in M/s Weldone Exim Pvt. Ltd. v. DGFT & Anr., directing greater scrutiny beyond ?1 crore. The respondents acknowledged the Division Bench decision but have appealed to the Supreme Court without a stay order.

The petitioner, having received ?1 crore, sought the remaining ?28.17 crores benefit in line with the M/s Weldone Exim Pvt. Ltd. decision, subject to further scrutiny. The High Court allowed the petition, setting aside the impugned order and directing re-examination of the claim. Respondents were instructed to request additional documents if needed, with a timeframe for submission and review. Despite the petitioner's claim of prior scrutiny, the Court emphasized the necessity of greater scrutiny per the Foreign Trade Policy.

In conclusion, the Court disposed of the petition, emphasizing adherence to the Division Bench decision for re-examining the claim and conducting necessary scrutiny beyond the initial ?1 crore benefit, as per the Foreign Trade Policy provisions.