Case Note & Summary
The petitioner, Ram Ratna International, a partnership firm engaged in manufacturing and exporting electrical cables and equipment, was categorized as a three-star export house. The Government of India introduced the Target Plus Scheme on 31.08.2004, effective from 01.04.2004, to reward star export houses with minimum threshold export turnover of Rs.10 crores in the previous year. The scheme provided for duty credit scrips based on incremental export growth: 5% for growth above 20% but below 25%, 10% for growth above 25% but below 100%, and 15% for growth above 100%. The petitioner made net exports of Rs.42,21,61,757.21 in 2004-2005 and Rs.91,45,81,389.72 in 2005-2006, an increase of 119.34%, thus falling under the 15% slab. The petitioner applied for duty credit scrips but received only a partial amount, leading to the filing of a writ petition under Article 226 of the Constitution of India seeking a direction to the respondents to issue balance/additional duty credit scrips for Rs.4,22,16,175.73. The court, after hearing the parties, held that the petitioner was entitled to the scrips as per the scheme and directed the respondents to issue the balance amount.
Headnote
A) Foreign Trade Policy - Target Plus Scheme - Duty Credit Scrips - Entitlement - The petitioner, a three-star export house, claimed duty credit scrips for 15% of incremental export growth above 100% under the Target Plus Scheme introduced on 31.08.2004. The court held that the petitioner was entitled to the scrips as per the scheme's slabs, and directed the respondents to issue the balance/additional duty credit scrips for Rs.4,22,16,175.73 (Paras 1-14).
Issue of Consideration
Whether the petitioner is entitled to balance/additional duty credit scrips under the Target Plus Scheme for the year 2005-2006 based on incremental export growth above 100%.
Final Decision
The court directed the respondents to issue balance/additional duty credit scrips for an amount of Rs.4,22,16,175.73 to the petitioner under the Target Plus Scheme.
Law Points
- Target Plus Scheme
- duty credit scrips
- incremental export growth
- entitlement
- Foreign Trade Policy
- Article 226
