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
