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TMI Blog2022 (8) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... , Advocate a/w. Ms. Priyanka Chavan, Advocate i/b. A. A. Ansari, Advocate for respondents. JUDGMENT (PER VINAY JOSHI , J .) Rule. Rule made returnable forthwith. Heard finally by consent of the learned counsel appearing for the parties. 2. The petitioner-Company raises a challenge to the non-consideration of the benefits under the Services Export from India Scheme (SEIS)for not holding a valid Import Export Code (IEC) number, at the time of rendition of services exported from India. 3. The petitioner is a Private Limited Company registered under the provisions of the Companies Act, 1956. The petitioner- Company is engaged in providing high quality data services. The petitioner's services i.e. market research services falls under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has invoked the writ jurisdiction of this Court. 6. The petitioner would submit that the object of FTP is to encourage exports from the India. The petitioner's eligibility for availing benefit under SEIS was rejected merely on technicalities that the petitioner did not hold an active IEC number on the date of rendition of services. As per para 3.08 of the FTP, one of the condition to avail the benefit under the SEIS is that the service provider should have an active IEC number at the time of rendering services for which SEIS befits have been claimed. The petitioner had obtained an IEC number on 12th March, 2018 i.e. before applying for the benefit of the scheme. It is submitted that the requirement of obtaining an IEC number at the time r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the condition regarding holding of an IEC number at the time of rendering services is contrary to the provisions of Section 7 of the FTDR Act. The condition embodied in para 3.08(f) of the FTP is against the very objective of the FTDR Act. The relevant provision of para 3.08(f) of the FTP reads as below:- "3.08 Eligibility (a)... (b)... (c)... (d)... (e)... (f) In order to claim reward under the scheme, Service provider shall have to have an active IEC at the time of rending such services for which rewards are claimed." 9. It is argued that the FTP is notified by the Central Government in exercise of the powers conferred under Section 5 of the FTDR Act, therefore, policy notified under the FTDR Act should be in conformi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e IEC number at the time of rendering service is in consonance with Section 7 of the FTDR Act. It is denied that proviso to Section 7 speaks about holding an IEC number at the time of applying for benefits under the Scheme. 11. The petitioner contended that delegated legislation cannot be contrary to the original statute. The delegated powers are for making rules for carrying out the purpose of the Act without adding or substituting any right or obligation. There can be no dispute about the said proposition of law. The only question falls for consideration is whether the eligibility criteria incorporated in para 3.08(f) of the FTP is inconsistent with Section 7 of the FTDR Act. 12. The learned counsel appearing for the petitioner has stra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... having an active IEC number at the time of rendering services for claiming reward. It is to be examined whether the said condition is inconsistent or casts an additional obligation on the exporter which was not intended or led under the principal statute. The learned counsel for the petitioner would submit that the FTP has been framed in pursuance of powers delegated under Section 5 of the FTDR Act. It is the prime submission that FTP being delegated legislation, it should be in conformity with the principal statute. In other words, by way of delegated legislation, additional rights or obligations cannot be imposed. In this regard, reliance is placed on the decision of the Supreme Court in case of Kunj Behair Lal Butail and others Vs. State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the FTDR Act, it pertains to the mandatory requirement of IEC number for making import or export of general goods. However, exception has been carved out by the proviso particularly in cases of import or export of services or technology. In the said eventuality, IEC number shall be necessary only when the service provider is taking the benefits under the FTP. The proviso does not lay down that the IEC number is essential at the time of rending services of said specified kind. The requirement of IEC number is only for taking benefits under the scheme. Therefore, it is abundant clear that the eligibility criteria of Clause 3.08(f) of the FTP has imposed additional restriction of having IEC number at the time of rendering services which was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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