Rika Global Impex Limited Vs Union of India And Ors (Bombay High Court)
The Bombay High Court considered a batch of petitions involving a common issue regarding entitlement to export rebate under the RoDTEP (Remission of Duties and Taxes on Export Products) Scheme for exports of white refined sugar. The petitioners, engaged in exporting white crystal sugar under ITC(HS) Code 17011490, claimed that they were eligible for duty credit under the RoDTEP Scheme introduced through a notification dated 17 August 2021 under the Foreign Trade Policy. Subsequent notifications dated 23 September 2021 prescribed the manner of issuance, utilization, and eligibility conditions for such benefits.
Later, by Notification dated 24 May 2022, the export policy for sugar was changed from “free” to “restricted,” allowing exports only with specific permission from the Directorate of Sugar. Despite this restriction, exporters were granted permissions and quotas under government notifications and orders, including a combined export release order dated 5 June 2022. The petitioners exported sugar in compliance with these permissions and fulfilled necessary conditions.
However, authorities denied RoDTEP benefits on the ground that sugar had become a restricted item, making it ineligible under the scheme. The petitioners challenged this denial as arbitrary, arguing that exports made with valid permissions could not be treated as prohibited or ineligible. They relied on prior decisions of the Gujarat High Court, which held that exporters who complied with conditions and obtained permissions remained entitled to RoDTEP benefits.
