Case Law Details
Aker Powergas Pvt. Ltd. Vs Union of India & Ors. (Bombay High Court)
Bombay HC Questions recovery of SFIS benefits via SCN issued after 10 Years, directs Revenue to take instructions
The Petitioner is a manufacturer. It was granted licenses by the DGFT under the Foreign Trade Policy (FTP 2104-2019) . It availed benefit of the “Served from India Scheme” (SFIS). The scrips were issued in 2013 and export obligation discharge certificate (EOD) was issued in 2015. Based on recent decision of the Supreme Court in Cummins case; where the High Court held that the said scheme is available only for Indian brands and not foreign brands; a Show Cause Notice dated 20.03.2026 was issued proposing to recover customs duties of Rs. 2 crores and imposed penalties. The same was challenged in the petition.
The Hon’ble Bombay High Court issued notice and grants liberty to approach in case any personal hearing notice is issued. It notes that the Show Cause Notice has been issued belatedly beyond 10 years. The Supreme Court; in a FERA matter; in the case of Standard Chartered Bank case; quashed such notice proposing imposition of penalties belatedly. Accordingly; directs Revenue to take instructions.
Argued by Adv. Bharat Raichandani i/b UBR Legal
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. The Demand-cum-Show Cause Notice dated 20.03.2026 issued by Respondent No.2, is under challenge in this writ petition inter alia on the ground of delay in issuance of the Notice.
2. Mr Bharat Raichandani, learned Counsel for the Petitioner submits that the Notice has been issued after more than 10 years since the date of the alleged transaction and therefore, in view of the decision of the Hon’ble Supreme Court rendered in Union Bank of India V/s City Bank, N.A 2022(382) ELT 293 (S.C.) the impugned notice is liable to be declared as bad in the eyes of law on such count alone.
3. Mr Ram Ochani, learned Counsel appearing on behalf of Respondent No.4, seeks time to take instrcutions. None is present for Respondent Nos.1 to 3.
4. Issue notice returnable in six weeks.
5. Mr Ram Ochani waives service of notice on behalf of Respondent No.4.
6. The learned Counsel for the Petitioner to supply copies of the petition to the Registry.
7. In addition to Court Notice, private Notice is also permitted on the unserved Respondents. Hamdust is allowed.
8. Liberty is granted to the Petitioner to approach this Court if any further Notice is issued by the authorities notifying date of hearing in the pending matter.
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