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Showing contexts for: target plus in M/S. Surya Lakshmi Cotton Mills Ltd. vs The Joint Director General Of Foreign ... on 1 March, 2019Matching Fragments
a) The first petitioner, M/s. Suryalakshmi Cotton Mills Limited, is engaged in the business of manufacture and export of Yarn and Denim fabrics, while the second petitioner is its Managing Director. For the purpose of convenience, the petitioners herein are referred to as 'the petitioner'.
b) The petitioner has filed an application for Duty Free Credit under Target Plus Scheme (TPS), which is one of the export promotional schemes, made available in Chapter 3 of the Foreign Trade Policy (FTP). The Duty Free Credit means a certificate issued to the eligible exporters as a reward/benefit, based on which, the scrip holder can import capital goods and other eligible items without payment of Customs Duty. In other words, the Duty Free Scrip can be considered as equivalent to cash paid to the exporters, which, they would, otherwise, have to pay the amount in the form of Customs Duties for the import of goods at the time of clearance. The petitioner has executed necessary undertakings before the competent authority in connection with and for the purpose of issuance of the Duty Free Credit Certificate.
TARGET PLUS SCHEME Objective 3.7.1 The objective of the scheme is to accelerate growth in exports by rewarding Star Export Houses who have achieved a quantum growth in exports. High performing Star Export Houses shall be entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed (Since the target fixed for 2004-05 is 16 %, the lower limit of performance for qualifying for rewards is pegged at 20% for the current year).
Percentage Duty Credit
incremental growth Entitlement
(as a % of
the
incremental
growth)
20% and above but 5%
below 25%
25% or above but 10%
below 100%
100% and above 15% (of
100%)
Note (1) Incremental growth beyond 100%
will not qualify for computation of
duty credit entitlement.
(2) For the purpose of this scheme,
the export performance shall not
be transferred to or transferred
from any other exporter. In the
case of third party exports, the
name of the supporting
manufacturer/ manufacturer
exporter shall be declared.
(3) Exporters shall have the option to
apply for benefit either under the
Target Plus Scheme or under the
Vishesh Krishi Upaj Yojana, but
not both in respect of the same
exported product/s. Provided
that in calculating the
entitlement under Para 3.7.3 the
total eligible exports shall be
taken into account for computing
the percentage incremental
growth but the duty credit
entitlement shall be arrived at on
the eligible exports reduced by
the amount on which the benefit
is claimed under para 3.8.2.
(4) All exports including exports
under free shipping bill verified
and authenticated by Customs
and Gems& Jewellery shipping
bills but excluding exports
specified under para 3.7.5, shall
be eligible for benefits under the
Target Plus Scheme.
(a) has, within a period of two years from the date of such decision or order, received a notice to show cause why such decision or order shall not be varied; and
(b) has been given a reasonable opportunity of making representation and, if he so desires, of being heard in his defence.
12. The petitioner company has applied for Duty Free Credit under Target Plus Scheme for the year 2004-2005 and availed the benefit of Rs.10,64,49,880/- under the said scheme by complying the procedure laid down in Appendix 17-D of the Foreign Trade Policy. Thereafter, the 1st respondent on receipt of the letter from Chief Commissioner of Customs, Hyderabad Zone, dated 18.11.2009 and DRI, Hyderabad, dated 11.1.2010, cancelled the said benefit on the ground that the petitioner company has been misusing the Target Plus Scheme. He also imposed total penalty of Rs.38,07,32,778/- with interest at the rate of 15% and also imposed penalty of Rs.25,00,000/- on the Managing Director and Rs.5,00,000/- each on the directors of the petitioner firm.