We are pleased to
release a Tax Alert that gives an update on the decision of the Bombay High
Court dealing with a bunch of writ petitions in respect of the eligibility of
Duty Credit scrip under Served from India Scheme (SFIS).
The issue under reference was the denial of duty credit entitlement under SFIS on the ground that the exports of the assessee did not promote Indian brand.
The Bombay High Court held that the object of the scheme is not to augment foreign exchange reserves but to create a powerful and unique ‘Served from India brand’. Since the petitioner had an established foreign brand prior to their entry in India, they are not eligible for SFIS benefit.
The Bombay High Court has differed with the decision of the single judge of the Delhi High Court in the case of Yum Restaurant (I) Pvt Ltd vs Co Union of India & Ors.
The issue under reference was the denial of duty credit entitlement under SFIS on the ground that the exports of the assessee did not promote Indian brand.
The Bombay High Court held that the object of the scheme is not to augment foreign exchange reserves but to create a powerful and unique ‘Served from India brand’. Since the petitioner had an established foreign brand prior to their entry in India, they are not eligible for SFIS benefit.
The Bombay High Court has differed with the decision of the single judge of the Delhi High Court in the case of Yum Restaurant (I) Pvt Ltd vs Co Union of India & Ors.
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