Braddock Infotech Private Limited Vs Joint Director General of Foreign Trade (Kerala High Court)
Kerala High Court held that person found ineligible for any benefit received under the terms of any scheme under the Foreign Trade Policy (FTP) is not liable to pay interest under section 28AA of the Customs Act, 1962.
Facts- The petitioner is a Private Ltd. Company. The petitioner is engaged in ‘placement and supply services of personnel’ which was entitled to duty credit scrip as rewards in terms of Chapter 3 of the Foreign Trade Policy (2015-2020) formulated for Service Exports from India in order to encourage/maximise export of certain notified services.
The petitioner was considered eligible and was granted a duty credit scrip having the value of Rs.8,91,934/-. However, on the basis of certain audit objections, the competent authority found that the petitioner was not entitled to the benefit of the Scheme. Therefore, the petitioner was required to remit back the amount covered by the duty credit scrip issued to the petitioner.
According to the petitioner the said amount was forthwith paid by the petitioner without raising any further dispute. However, vide the present petition, the petitioner is contesting levy of interest under the provisions of Section 28AA of the Customs Act, 1962.
