Director General Of Foreign Trade vs M/S Kanak Exports on 27 October, 2015
20] We have noticed the salient features of the Target Plus Scheme
which was made effective from 01.04.2004. Petitioner had made net
exports of Rs.42,21,61,757.21 in the year 2004-2005. This increased to
Rs.91,45,81,389.72 in the year 2005-2006, percentage of increase being
119.34 percent. Thus in terms of the scheme, Petitioner became eligible to
the benefit of 15% of duty credit entitlement. However, vide Notification
No.08 of 2006 dated 12.06.2006 benefit of entitlement was curtailed to
5% with retrospective effect from 01.04.2005. When petitioner lodged
claim under the scheme for duty credit entitlement, it was issued duty
credit scrips to the extent of 5% of the incremental percentage of exports
vide licence dated 14.02.2007 for an amount of Rs.2,11,08,087.85.
Supreme Court in Kanak Exports (supra) while upholding the validity of
the Notification No.08 of 2006 however held that the said notification
could not be applied retrospectively; it could only be applied prospectively.
In tune with the Supreme Court judgment, Respondent No.2 issued
Notification No.6/ 2015-2020 dated 08.05.2017, besides issuing trade
notice on the same date setting up Zonal Committees for scrutiny of claims.
It was thereafter that Petitioner renewed its claim for realization of the
balance/additional duty credit scrips under the scheme for the balance
amount of Rs.4,22,16,175.73 (Rs.4,22,16,175.15) covering the period from
01.04.2005 to 31.03.2006 which was earlier denied on account of
retrospectivity. Following a series of correspondence, Petitioner has
BGP. 8 of 14
Order in WPST-3769-20.doc.