Benefit of the ‘Served from India Scheme’ cannot be denied only on the ground that the companies were subsidiaries of foreign companies
Yum Restaurants (I) Pvt. Ltd.&Anr(the Petitioners)are companies incorporated under the erstwhile Companies Act, 1956 and have their registered office situated in India. The Petitioners applied for license (Duty Credit Scrips) in terms of the‘Served from India Scheme’ (SFIS)as framed under the Foreign Trade Policy (FTP) 2004-09 (effective upto August 26,2009) and FTP 2009-14 (effective from August 26,2009) which were duly accepted.
However, later on the Policy Interpretation Committee (PIC) and Director General of Foreign Trade (DGFT) denied the benefit of SFIS, as framed under the FTPto the Petitioners and separate communications were sent to the Petitioners withdrawing/recalling the said benefits on the ground that they were subsidiaries of foreign companies.Hence the objective of SFIS to accelerate growth in export of services from India which creates a powerful and unique served from India brand is not achieved.Being aggrieved, the Petitioners filed Writ Petition before the Hon’ble High Court of Delhi.
The Hon’ble High Court of Delhi allowed the benefit of SFIS to the Petitioners and held the following:
Therefore, the decision of DGFT/PIC denying the benefit of the SFIS to the Petitioners by withdrawing/recalling the said benefits was set aside.