NEW DELHI: The Union Cabinet has approved the implementation of Supreme Court’s judgment on eligibility under the Target Plus scheme for exporters that will lead to settling of claims as per original provisions of the foreign trade policy (FTP).
The settlement of exporters’ claims will have a revenue implication of Rs. 2,700 crore, according to an official release.
“Benefit is being extended to all the applicant exporters eligible as per provisions of the initially notified TPS Scheme under FTP for the year 2005-06 and as per provisions of FTP 2004-09 throughout the Country,” the release said.
The scope of benefits under the TPS was narrowed after the scheme was implemented but exporters dragged the matter to court arguing that the new provisions could not be applied retrospectively.
The Supreme Court in a judgment on the Target Plus scheme in 2015 said that the Centre’s notifications making certain products ineligible and reducing the rates could not be applied retrospectively and they would be effective only from the date of their issue.
The claims will be considered as per original notifications till the date of the two new notifications. “The guidelines and modalities for processing the claims will be worked out by the DGFT in consultation with the Department of Revenue and is proposed to be completed in one year from the date of approval of the Cabinet,” the release said.
The corrective measure will bring an end to multiple litigations with the Government and the claims under the TPS will be issued as per original provisions under FTP in compliance with the decision of the Supreme Court, it added.