CorroHealth Infotech Private Limited Vs Assistant Director General of Foreign Trade for Zonal Additional Director General of Foreign Trade (Madras High Court)
The petitioner challenged an impugned communication dated 12.03.2024 issued by the authority, alleging excess SEIS duty credit availed for 2015–2020. The petitioner argued that its services were correctly classified under Sl.No. I(A)(b) of the Annexure to Appendix 3D of the Foreign Trade Policy, which covers accounting, auditing, and bookkeeping services under CPC Code 862, eligible for 5% or 7% benefits on net foreign exchange earned. It was contended that the impugned order did not specify the legal provision under which it was issued, creating uncertainty regarding its validity.
The respondent stated that the communication was only a preliminary letter—not a show cause notice—and intended to seek the petitioner’s reply before deciding further action. It was clarified that a formal show cause notice would be issued only if the reply was unsatisfactory.
The Court accepted the respondent’s submission and disposed of the writ petition. It directed the petitioner to submit a reply within two weeks. Depending on the reply, the authority may either close the matter or issue a show cause notice clearly specifying the relevant legal provisions, before proceeding with adjudication. No costs were awarded, and the connected miscellaneous petition was closed.
