ORDER :

PRAYER: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Certiorarified Mandamus, calling for the records, and proceedings culminating in the impugned order dated 02.04.2014 passed by the second Respondent bearing F.No.04/21/71/033/AM11 and quash the same and consequently, direct the Respondents to refund the Duty credit Scrips amounting to Rs.86,85,133/- illegally collected from the petitioner with consequential extension of period of utilization.

The petitioner is a hotel whose clientele includes foreigners. The Central Government has floated a scheme in the year 2007, entitled 'Served From India Scheme' (SFIS). The object of this scheme is to accelerate growth, promote and encourage export of services by awarding incentives in the form of monetary rewards on the foreign exchange earned by various service providers entitled to the benefits of this scheme.

2. The petitioner had applied on 15.10.2010 for the benefits of the scheme in regard to the foreign exchange earnings during the period 01.04.2009 to 31.03.2010. The petitioner was issued scrips for the period 01.04.2008 to 31.03.2009, amounting to a sum of Rs.2,66,51,000/-. The validity of the scrips was till 18.10.2011.

3. The petitioner received a notice on 06.12.2013 that it had been granted excess duty credit in respect of the scrips issued between 01.04.2009 to 26.08.2009 amounting to a sum of Rs.86,81,454/-. The petitioner was called upon to refund the excess duty credit allegedly granted along with applicable interest within 15 days from the date of that letter under threat of coercive action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992.

4. The petitioner bought some time to collate the particulars required, since the transactions were few years old. Thereafter a detailed reply was furnished on 10.01.2014. It is best that this reply is not referred to in detail for the reason that the petitioner has inter alia, intermingled the issue that arises for decision in this writ petition, with facts relating to applications and scrips for the prior periods, that would have no bearing on this writ petition. Instead of clarifying, the response confuses.

5. On 11.01.2014, the petitioner responded quantifying the amount of scrips surrendered by it at a sum of Rs.86,85,133/- as against a sum of Rs.86,81,454/-, which it had been called upon to surrender. Admittedly, the quantum of scrips surrendered is slightly in excess of what it was called upon to surrender and this is explained in letter dated 11.01.2014 as follows:

“Further to our letters dated 02.12.2013, 02.01.2014 and 10.01.2014, and explaining our contention on the above subject in person on 10.01.2014, we now surrender the following SFIS Scrips issued to us on 30.07.2013 for a total amount of Rs.86,85,133.00 to cover the above excess duty credit claimed to be given to us for the year 2009 and 2010.

We had made a representation to debit the expired unutilized licenses Nos.0410108648/22/00 Dt.19.10.2009(SEA), 0410108649/22/00 – Dt.19.10.2009 (AIR) and 0410108650/22/00 – Dt.19.10.2009 (SEA) for adjusting Rs.86,81,454.00.

In the event of the above is considered by DGFT – New Delhi, we would request you to reinstate the value in our Scrip Nos.0410148368 – dated 30.07.2013 and 0410148370 – dated 30.07.2013.

Your goodself also appreciated that we are in the midst two major projects are underway and thus the imports of the essential goods for the projects is required.

Hence we would request your goodself to issue necessary instructions to release the following EPCG applications pending at your office.