In Brief
The Supreme Court upheld restrictions on export incentives for export-oriented units (EOUs) under the Foreign Trade Policy 2006–07. The appellant, a DTA purchaser sourcing from a 100% EOU, sought export benefits under the Scheme. The Court held that administrative clarifications to clarify ambiguities in notified schemes need not be published in the gazette; only formal amendments require such publication. More critically, the Court ruled that EOUs excluded from direct incentives cannot circumvent this exclusion by routing exports through intermediary purchasers. The Scheme's purpose—to deny incentives to 100% EOUs—cannot be defeated by using a purchaser as a conduit. The appeal was dismissed.
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