Target Plus Scheme (TPS) - Implementation of Hon'ble Supreme Court's Judgment dated 27.10.2015 in CA No. 554 of 2006 titled DGFT v/s Kanak Exports.

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I I .,-) To ,. Circular No. 19/2017-Customs F.No.605/04/2017-DBK Government of India Ministry of Finance, Department of Revenue Central Board of Excise and ·customs Drawback Division New Delhi, dated 3P' May. 20l 7 Pr. Chief C ommissioners/Pr. Directors 'General Chief Comhlissioners/Directors General Pr. Commissioners/Commissioners; Wl under CBEC) Madam/Sir, Subject Implementation of Hon'ble Supreme Court's Judgment dated 27.I0.20l5 in CA No. 554 of 2006 titled DGFT v/s Kanak Exports. Attention is invited to ·the_ Targ�_tj"!J,i� __ S_ciJ.e.m.e_ITPS) (Para 3.7.1 of FTP 2004-2009} wh.icb_.was announced by DGFT on 31.08.2004 with the- objective to. accelerate growth in exports by rewarding Star Export HoLises_ who ha\le achieved ·minimum export turn·over in free _foreign exchange of ·Rs. 10 crores ln pre\lious licensing year. The Scheme pro\lided duty free credit s· @ 5%. 10% and 15% of FOB value of incremental exp·orts for growth of 20%, 25%_ and 100.% _respectively. Subsequently, for Target Plus Scheme for 2005-06, DGFT issued Notifications No. 48 dated 20.2.2006. Notification No. OB dated 12.06.2006 and Nopfication No. 20 (RE 2006)/2004-2009 dated 13.7.2006 to curtail the rate of entltlem en_t to 5% o f FOB Value instead of 5%, 10% and 15% of FOB value; exclude high \lalue items. such as cut and .polished diamonds and bulk- products. ores, cereals, sugar, crude and crude-based product s from scheme and to lower eligibility cfiterion to- Rs. 5 crores from the existing level of Rs. 10 crores. These ch_anges were made �ffecti\'e from 1'1 April -2005. Accordingly, this Departriient issued Notification No. 73/2006-Cus dated· 10.07.2006 to implement Target Plus Scheme for 2005-06. The re\lenue notification inter c!Jia included the extended list of 'ineligible exports as per amendments made by DGFT. _The retrospecti\le amendments by .DGFT of Ta rget PLu!ii sCheme 2005-2006 were· challenged in 2. \lariou s courts. The Hon'ble Supreme Court in its judgment dat ed 27.10.2D15 {in the ma�ter of DGFT v /s Kanak Exports & Ors in C.A. No .. 554 of ·2006) has hetd that DGFrs· Notification No. 4'8 dated 20.2.2006_ and Notification No. 8 ·dated l2.62006 r elated t o TPS cannot be applied retrOspectively. 3. The Government has decided to accept .and implemen t the aforesaid Judgment ,of the Hon'ble Si.Jpreme Court. DGFT has issued - Notification No. 6/2015-2020 dated 08.5.2017 to amend their Policy Notification No. 48 dated 20.2.2006 to make it effective from the date of their issuance Instead of 1.4.2005 and rescind Notification No. 08 (RE 2006)/2004-2009 dated 12.6.2006 and No. 20 (RE 2006)/2004�2009 dated 13.7.2006. C0nsequently, OoR Notification No. 73/2006-Cus dated 10.7.2006 which mentions ineligible products in t�rrns of corresponding FTP provisions has also been amended vide Notification No. 22/2017-Customs dated 31.05.2017. the Further .. to rule out any misuse of the scheme, OGFT h as issued Trade Notice No.-_06/2018 4. dated 08.5.2017 inter-alia_setting· up Zonal Committees fo-r scrutiny of claims. The procedure specified in the DGFT's Trade Notice is self-explanatory. Thus TPS Scrips will now be issued for exports of 2095-2006 after scrutiny by these Zonal Committees. Field formations are directed to allow usage of these scrips subject to prescribed· checks and procedures. The trade and officers shoul d be guided by the Com missioners. Difficulties if -any may be 5. brought to the notice of the Board. l'.v (Dinesh Kumar Gupta) Director Tel: 23360581 X�.:I .l3C-�3S�l dH w�Eo=E l1D2 92 �ew

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