JSA Advocates & Solicitors successfully represented the Chillies Exporters Association India (CEAI) before the Hon’ble Delhi High Court in a significant matter concerning the denial of benefits under the Transport and Marketing Assistance (TMA) scheme for agricultural products, administered by the Directorate General of Foreign Trade (DGFT).
The dispute arose from the Agricultural Products Scheme notified on 9 September 2021, under which eligible exporters were entitled to incentives by way of reimbursement of freight and marketing expenses incurred for exports made during the period from 1 April 2021 to 31 March 2022. Despite the notification, the DGFT failed to operationalise the scheme, resulting in the denial of incentives to eligible exporters. Subsequently, the scheme was foreclosed on 25 March 2022, purportedly to revamp, redesign, and refocus it for improved outcomes.
Chillies Exporters Association India, through JSA Advocates & Solicitors, filed a writ petition before the Hon’ble Delhi High Court challenging the DGFT’s actions. In its judgment, the High Court held that the Central Government does not have the power to issue notifications or orders with retrospective effect under Sections 3 and 5 of the Foreign Trade (Development and Regulation) Act, 1992.
The Court accordingly granted relief to the petitioners by directing that the benefits under the scheme be allowed for exports effected between 9 September 2021 and 24 March 2022. The total reimbursement amount granted to the exporters is INR 117.26 million.
The JSA team was represented by Partner Manish Mishra, with support from Principal Associate Shikha Parmar and Senior Associate Shubh Dixit.
Manish has more than 23 years of experience in Indirect taxation across Industry, Consulting and law firms.