Gac Shppin (INDIA) PVT LTD. vs. Union Of INDIA
Held
The Court, agreeing with a Bombay High Court judgment, held that Circulars No.06/2018 and No.8/2015-20 were ultra vires the Foreign Trade Policy 2015-20 for adding conditions that curtailed SEIS benefits. Consequently, the show cause notices issued based on these quashed circulars were set aside, and the respondents were barred from proceeding against the petitioners based on them.
Facts
The petitioner, a shipping agent, received Service Exports from India Scheme (SEIS) benefits under the Foreign Trade Policy 2015-2020. Subsequently, the respondents issued Circulars No.06/2018 and No.8/2015-20, which created doubt regarding the petitioner's eligibility for SEIS benefits on sub-contracted services, leading to show cause notices for recovery. The petitioner challenged these notices and the circulars.
Key Issues
The key legal issues were whether the Circulars No.06/2018 and No.8/2015-20 were valid in curtailing SEIS benefits for principal service providers, and if the show cause notices based on these circulars could be sustained.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI THURSDAY, THE 16TH DAY OF MARCH 2023 / 25TH PHALGUNA, 1944 WP(C) NO. 18500 OF 2021 PETITIONERS: 1 GAC SHPPING (INDIA) PVT LTD. GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003, REPRESENTED BY ITS DIRECTOR, DR.ROY MATHEWS. 2 DR.ROY MATHEWS DIRECTOR, M/S.GAC SHIPPING (INDIA) PVT.LTD., GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003. 3 ANIL K.MENON DIRECTOR, M/S.GAC SHIPPING (INDIA) PVT.LTD., GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003. 4 MIRIAM MATHEWS DIRECTOR, M/S.GAC SHIPPING (INDIA) PVT.LTD., GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003. 5 BALAGOPAL P.G. GENERL MANAGER (ACCOUNTS), M/S.GAC SHIPPING (INDIA) PVT.LTD., GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003. 6 P.SANTHOSH KUMAR CHIEF FINANCIAL OFFICER, M/S.GAC SHIPPING (INDIA) PVT.LTD., GAC HOUSE, SUBRAMANIAN ROAD, WILLINGDON ISLAND, KOCHI - 682 003. SRI BY ADVS. SRI JOSEPH KODIANTHARA (SR.) V.ABRAHAM MARKOS SRI ABRAHAM JOSEPH MARKOS SRI ISAAC THOMAS SRI ALEXANDER JOSEPH MA
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