In Brief
The Supreme Court upheld the validity of a 2009 circular clarifying export incentive scheme rules under the Foreign Trade Policy. The circular excluded exports made through 100% export-oriented units and SEZ units from duty credit entitlements under the Vishesh Krishi Upaj Yojana scheme. The Court held that such clarifications do not require formal policy amendments and serve to prevent circumvention of policy objectives. Since export-oriented units already enjoy special tax and duty-free benefits, their exclusion from additional incentive schemes is valid. The appeal by a merchant exporter purchasing from such units was dismissed."
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