Policy Circular No. 15 (RE-08)/2004-2009 dated
04.07.2008
Grant of benefits under Served From India Scheme (SFIS) and Para 5.4(v) of FTP
RE2007, clarification
Attention is invited to Para 5.4 (v) of EPCG Scheme -
FTP RE2007. It is provided therein that “Foreign exchange counted towards
fulfillment of EO (over and above the average) shall not be eligible for
incentives / rewards under promotional measures / schemes”. This clause has been
deleted in FTP RE2008.
2. In so far as Service Providers are concerned, it is clarified that Para
5.4(v) of FTP RE2007 applies to foreign exchange earned during 1.4.2007 till
31.3.2008 and does not apply to foreign exchange earned prior to 1.4.2007 or
after 31.3.2008. Service Providers have to first utilize foreign exchange earned
during 1.4.2007 till 31.3.2008 for fulfillment of pending EO under EPCG
Authorisations (over and above the average, if any) and SFIS would be entitled
only on any additional foreign exchange earned during 1.4.2007 till 31.3.2008
thereafter. Accordingly, details of all pending EO under EPCG Authorizations
must be called for and SFIS granted only on the foreign exchange earned during
1.4.2007 till 31.3.2008 which is over an above the requirement of total pending
EO under all EPCG Authorisations (over and above the average, if any) of the
Service Provider.
3. RAs may undertake a special drive to cross check the above and report the
same to headquarters within 45 days of issue of this circular. In case it is
found that excess SFIS benefit for foreign exchange earned during 2007-08 has
already been granted in a particular case, recovery may be effected immediately
(by surrender of unused duty credit scrip, reducing the value of SFIS duty
credit scrip, or deposit of TR challan, or any adjustment from any pending duty
credit scrip application).
4. Further at the time of redemption of EPCG Authorisations of Service Providers
where foreign exchange earned during 1.4.2007 till 31.3.2008 is used for
discharge of EO, RAs must examine this aspect once again to ensure that SFIS has
not been granted for foreign exchange earned during 1.4.2007 till 31.3.2008
which has been used for fulfillment of pending EO under EPCG Authorizations.
This issues with the approval of the DGFT.Sd/-
(A. K. Singh)
Joint Director General of Foreign Trade
(Issued from File No: 01/94/180/286/AM09/PC-3)
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