The Delhi High Court bench of Justice Sanjeev Narula has issued a notice to the Union of India (UOI)/Directorate General of Foreign Trade (DGFT) concerning the computation of Net Foreign Exchange Earnings (NFE) and petition claiming erroneous interpretation of foreign trade policy.

The petitioner/assessee has challenged the orders passed by Directorate General of Foreign Trade, by which the Petitioner’s claim under the Service Exports from India Scheme for Financial Year 2017-18 and FY 2018-19, has been partially rejected. The Petitioner contended that the rejection is based on an erroneous interpretation of the provisions of the applicable Foreign Trade Policy.

The issue pertains to the deduction of the entire foreign exchange expenditure (including both export and domestic operations) from the foreign exchange earnings of notified services while determining eligibility under the Service Export from India Scheme (SEIS).

The assessee contended that the position adopted by the DGFT is not only contrary to the policy provisions but also inconsistent with their earlier stance in similar cases involving our client and other exporters.

Previously, the assessee preferred a second-level appeal before the Appellate Committee under Section 15 of the Foreign Trade (Development and Regulation) Act. However, the appellate authority has been non-functional due to the vacancy in the Chairman’s position. Consequently, the assessee filed this writ petition.

The court has issued the notice to the Union of India (UOI)/Directorate General of Foreign Trade (DGFT) and directed to file the Counter affidavit within a period of four weeks.

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Case Details

Case Title: Intertek India Pvt. Ltd Versus DGFT & Ors.

Case No.:  W.P.(C) 17509/2024

Date: 19.12.2024

Counsel For Petitioner: Nikhil Gupta

Counsel For Respondent: Shiva Lakshmi