S.A. Exports Vs Additional District General of Foreign Trade & Ors. (Calcutta High Court)
The Calcutta High Court dismissed a writ petition filed by S.A. Exports, which sought to resurrect a claim for the balance of duty credit scrip under the Incremental Exports Incentivisation Scheme. The Court found the claim to be excessively delayed, holding that the petitioner’s failure to act for a prolonged period, even after a favorable judicial interpretation, rendered the claim “dead” and impermissible to be unsettled after approximately seven years.
Background and Scheme Details
The petitioner, a registered partnership engaged in foreign trade, sought the benefit of the Incremental Exports Incentivisation Scheme, governed by Notification No. 3 dated April 18, 2013, and Notification No. 43 dated September 25, 2013, issued under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992.
The claim related to the export period of April 1, 2013, to March 31, 2014, against the preceding year. The petitioner’s total entitlement was calculated at Rs.1,66,37,438.86/−. However, the petitioner, interpreting Notification No. 43 as imposing an upper limit, restricted its application (filed on January 23, 2015) in paragraph B-3 to only Rs.1 crore. The Foreign Trade Development Officer accordingly permitted the credit to the petitioner to the extent of Rs.1 crore via an authorization letter dated May 14, 2015.
