2016 (10) TMI 156 - HC - Customs

Served from India Scheme (SFIS) - DGFT rejected the application - whether the claim included for foreign rebate, freight discount, peak season surcharge and services tax are classified as services or not - Foreign exchange earnings credited in to EEFC Account - Held that - this Court finds it appropriate to set aside the impugned orders of the second respondent, dated 29.10.2015, and to direct the first respondent to consider the applications of the petitioner, dated 13.10.2015, for the grant of benefits, under the Served from India Scheme , as claimed by the petitioner, for the years 2013-14 and 2014-15, and pass reasoned orders thereon, after giving an opportunity of hearing to the petitioner, within a period of eight weeks from the date of receipt of a copy of this order. The petitioner shall furnish a copy of the applications, dated 13.10.2015, to the first respondent, along with a copy of this order. However, it is made clear that this Court has not expressed any opinion on the merits of the matter, by passing this order. - Writ petition allowed

Summary

Issues involved:
Petitioner seeking Writ of Certiorarified Mandamus to quash impugned orders rejecting claims under "Served from India Scheme" for 2013-14 and 2014-15.

Analysis:
The petitioner, a logistics service provider registered with the Service Tax Department and Service Export Promotion Council, sought benefits under the "Served from India Scheme" for the years 2013-14 and 2014-15. The scheme, under the Foreign Trade Policy, aims to boost service exports by providing duty credit scrip to eligible Indian service providers with foreign exchange earnings of at least ?10 lakhs. Initially, the petitioner's application for 2012-13 was rejected due to remittances from EEFC accounts. Subsequently, after representations and clarifications, applications for 2013-14 and 2014-15 were also rejected citing reasons like non-qualification of certain earnings as services and foreign exchange credited to EEFC Account.

The petitioner challenged the rejection of applications in writ petitions, alleging lack of proper reasons and denial of a hearing by the second respondent, seeking the first respondent to reconsider the applications. The court noted the absence of detailed reasons in the rejection orders and directed the first respondent to review the applications for benefits under the scheme for 2013-14 and 2014-15 within eight weeks, providing the petitioner with a hearing. The court clarified that its order did not imply a judgment on the case's merits, allowing the writ petitions and not awarding costs.

In conclusion, the court's judgment favored the petitioner by setting aside the rejection orders and instructing a reconsideration of the applications under the "Served from India Scheme," emphasizing the importance of providing a fair hearing and reasoned decisions in such matters.