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Circular No. 19/2017?-Customs
F.No.605/04/2017-BBK
Government of tndia
‘Ministry. of Finance, Department of Revenue
Central Board of Excise and Customs
Drawback Division ee
New Dethi, dated 31" May, 2017
To ; . ,
Pr. Chief Commissioners/Pr. Directors General - .
Chief Commissioners/Directors General |
_ Pr. Commissioners/Commissioners; (Ali under CBEC)
’ Madam /Sir,
Sublect; Implementation of Hon'ble Supreme Court's Judgment dated 27.10.2015 in CA No.
554 of 2006 titted DGFT v/s Kanak Exports.
Attention is invited to the ‘Target Plus. Scheme (TPS) (Para 37.1 of FTP_2004-2009) which was .
announced by DGFT on 31.08.2004 with the: objective to. accelerate growth in exports by rewarding
Star Export Houses who have achieved minimum export turnover in free foreign exchange of Rs. 10
crores in previous licensing: year. The Scheme provided. duty free credits @ 5%, 10% and 15% of
FOS value of incremental exports for growth of 20%, 25% and 100% respectively. Subsequently, for
Target Plus Scheme for 2005-06, DGFT issued Notifications No. 48 dated 20.2.2006,; Notification No.
OB dated 12.06.2006 and Notification No. 20 (RE 2006)/2004-2009 dated 137.2006 to curtail the ~
rate of entitlement to 5% of FOB value instead of 5%, 10% and 15% of FOB value; exclude high
value items, such as cut and polished diamonds and bulk preducts, ores, cereals, sugar, crude and
crude-based products from scherne and to lower eligibility criterion to Rs. 5 crores from the existing
level of Rs. 10 crores. These changes were made effective from 1 April 2005. Accordingly, this
Department issued Notification No. 73/2006- Cus dated 10.07.2006 to implement Target Pius Scheme
for 2005-06. The revenue notification inter alia included the extended list of ineligible exports aS per _
amendments made by DGFT. - :
2. The retrospective amendments by . DGFT of Target Plus Scheme 2005-2006 were challenged in
various courts. The Hon'ble Supreme Court in its judgment dated 27.10. 2D1i5 {in the matter of DGFT:
v/s Kanak Exports & Ors in CA. No.. 554 of 2006) has hetd that DGFT’s Notification No. 48 dated
20.2.2006, and Notification No. 8 dated 126.2006 related to TPS cannot be applied retrospectively.
3s The. Government has decided to accept and implement the aforesaid Judgment ; of the Hon'ble
Supreme Court. DGFT has issued Notification No. 6/2015-2020 dated 08.5.2017 to. amend their Paticy
- . Notification No. 48 dated 20.2.2006 to make it effective from the date of their issuance instead of
1.4.2005 and rescind Notification No. 08 {RE 2006)/2004-2009 dated 126.2006 and No. 20 (RE
- 2006)/2004-2009 dated 13.7.2006. Consequently, DoR Notification No. 73/2006-Cus dated 10.7.2006 —
which mentions the ineligible products in terms of corresponding FIP provisions has also been
amended vide Notification No, 22/2017-Customs dated 31.05.2017.
4. Further, to rule out any misuse of the scheme, DGFT has issued Trade Notice No.- -06/ 2018
dated 085.2017 inter-alia setting up Zonal Committees for scrutiny of claims. The procedure specified
in the DGFT’s Trade Notice is self-explanatory. Thus TPS Scrips will now be issued for exports of
2005-2006 after scrutiny by these Zonal Committees. Field formations are directed to allow usage of
_ these scrips subject to prescribed’ checks and precedures,
5S. | The trade and officers should be guided by the Commissioners. Difficulties if any may be
brought to the notice of the Board.
we
“@inesh Kumar Gupta)
Director
Tel: 23360581
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