Judicial authority mandates timely consideration of representations regarding duty credit scrips under foreign trade policy.

J U D G M E N T

Dated this the 29^th day of January, 2026 The petitioner is a Private Limited Company, incorporated under the Companies Act, 1956, mainly involved in inbound tour operations. In exercise of the powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act 1992, the Central Government has, from time to time, issued the Foreign Trade Policy (FTP) and the Handbook of Procedures.

2. In the present case, the petitioner is with the FTP for the year 2009 to 2014 which was extended for 2014-2015 also. The fundamental objective of the FTP is to promote export and allied services so as to augment Foreign Exchange Reserves of the Country. Various incentives / promotional measures have, therefore, been formulated in the FTP.

3. Chapter 3 provides for promotional measures in the Department of Commerce and Para 3.12 of the FTP specifically provides for reward / incentive under the head Served From India Scheme (SFIS). Indian Service Providers of services listed in Appendix 41 of HBPv1, who have free Foreign Exchange Earning of at least ₹10 lakhs in current Financial Year will be eligible for Duty Credit Scrip. For Individual Indian Service Providers, minimum free Foreign Exchange Earnings would be ₹5 Lakhs. The petitioner falling within this category, received 14 Duty Credit Scrips amounting to ₹6,80,53,663/-.

4. The petitioner states that even though such scrips were issued, the same were deemed as non- transferable in principle and therefore, the petitioner was restricted from transferring the scrips and furthermore were only permitted to be used predominantly for import of vehicles for commercial tourism operations, thereby limiting their applicability and usability. Challenging the same and requesting for an extension on the validity of the scrips, the petitioner had filed W.P.(C) No.1410 of 2019 (Ext.P18) which culminated in Ext.P19 judgment dated 24.02.2025, whereby, the petitioner was directed to file a representation requesting for relaxation of the SFIS.

5. Accordingly, the petitioner submitted Ext.P20 representation dated 24.03.2025 seeking relaxation pursuant to which the validity of the scrips were extended until 31.01.2026. However, no favourable decision was taken with respect to the transferability of the scrips. Even though the petitioner had a chance to use the scrips during the G20 Global Summit, on account of the speed-governor restrictions on motor cars and other administrative delays, the petitioner was not able to utilise the scrips for purchase of any foreign vehicle, contends the petitioner.

6. Subsequent thereto, in view of certain administrative relaxation, the petitioner was able to import a car by utilising a part of the scrips issued to the petitioner. However, a large portion of the scrips remain unable to be put to effective use and the same are set to expire on 31.01.2026. Furthermore, by way of import of car and on account of change in tax framework viz. advent of the GST legislations, it was no longer possible to use the scrips for payment of IGST (Integrated Goods and Service Tax) which accumulated on the purchase price of the car.

7. Under the changed policy prevailing currently, the renewed / extended Exts.P3 and P4 series scrips remaining un-utilised have to be governed by such changed policy wherein transferability is clearly permitted. The petitioner states that there is no rational or justification in now not permitting such transferability after the petitioner has made every effort. It could never have been intention of the Government or the policy to let such genuinely availed o