ADYAR GATE HOTELS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) 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 1/4/2009 to 31/3/2010. The petitioner was issued scrips for the period 1/4/2008 to 31/3/2009, amounting to a sum of Rs.2,66,51,000.00. The validity of the scrips was till 18/10/2011.

(3.) The petitioner received a notice on 6/12/2013 that it had been granted excess duty credit in respect of the scrips issued between 1/4/2009 to 26/8/2009 amounting to a sum of Rs.86,81,454.00. 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.