Delhi High Court issues Notice to UOI for denying SEIS benefit under Management consultancy Service

In a recent ruling in case of Intertek India Pvt. Ltd. vs Union of India in W.P.(C) 14773/2021, the Hon’ble Delhi High Court has issued notice to the respondent, wherein the petitioner had challenged the retrospective disentitlement of Service Exports from India Scheme (SEIS) benefit available under the Foreign Trade Policy (FTP) and Handbook of Procedures (HBP) for FY 2019-2020.

SEIS aims to promote export of services from India by providing duty scrip credit for eligible exports. Under the scheme, service providers, located in India, are rewarded under the SEIS scheme, for all eligible export of services from India. The FTP and HBP for 2015-2020 prescribed SEIS entitlement on certain services and basis such assurance from the government businesses were established and exports were undertaken.

It is to be noted that Directorate General of Foreign Trade (DGFT) vide Notification No 29/2015-2020 dated 23rd September amended [ftp://FTP 2015-2020]FTP 2015-2020 and announced SEIS Scheme and rates for FY 2019-20 with modified list of eligible services. In the modified list of services eligible services, benefit on Management Consultancy Services was discontinued. This move by the government left service exporters in the lurch as they could not claim benefit of SEIS which was 5% of Net Foreign exchange.

In view of the above, the Hon’ble Delhi High Court has now issued notice to the Union of India. Further, the matter has now been tagged with W.P.(C) Nos. 14598/2021 (M/S JCB India Ltd. vs UOI & Anr.) and 14735/2021 (Glaxosmithkline Consumer Private Limited & Ors.) on 25.02.2022 before Division Bench -I.



Nikhil Agarwal

"Nikhil is a qualified Chartered Accountant and law graduate with 6 plus years’ experience in Indirect taxes. Prior to joining ALA, Nikhil was working with EY as Manager wherein he advised multiple MNC operating in Technology, Telecom and Media space. He specialises in advising clients on tax issues relating to GST, Service Tax, VAT, Customs and Foreign Trade Policy and Direct taxes. Nikhil has been extensively involved in transactions pertaining to structuring of business operations, tax efficient business models, GST transition & implementation projects, Tax compliance and reviews to name a few."