M/S NADIA EXIM vs THE DIRECTOR GENERAL OF FOREIGN TRADE
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 6 DAY OF NOVEMBER, 2026
PRESENT
THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
AND
THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA
WRIT APPEAL NO.1447 OF 2025 (GM-RES)
BETWEEN:
M/S. NADIA EXIM,
REP. BY ITS PROPRIETOR
MR. ROY DANIEL SOUZA,
AGED ABOUT 62 YEARS,
PREVIOUSLY HAVING THE ADDRESS AT
TH
8A, 8 FLOOR, 'SOLUS' JAIN HEIGHTS
ST
NO.2, 1 CROSS, J.C. ROAD,
BANGALORE-560 002.
AND PRESENTLY HAVING THE ADDRESS AT
#A 103, WILSON MANOR APARTMENTS
TH
13 CROSS, AREKEMPANAHALLI,
BANGALORE SOUTH, BENGALURU-560 027.
…APPELLANT
(BY SRI. NANDISH PATEL, ADVOCATE)
AND:
1. THE DIRECTOR GENERAL OF FOREIGN TRADE,
OFFICE OF THE DIRECTOR GENERAL OF
FOREIGN TRADE, UDYOG BHAVAN,
NEW DELHI-110 011.
2. THE JOINT DIRECTOR GENERAL OF FOREIGN TRADE,
KENDRIYA SADAN, KORAMANGALA,
BANGALORE-560 034.
…RESPONDENTS
(BY SRI. KUMAR M.N., CGSPC)
Digitally signed
by C K LATHA
Location: High
Court of
Karnataka
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO CALL FOR THE ENTIRE
RECORDS IN W.P.NO.49480/2017 (GM-RES); SET ASIDE THE ORDER
DATED 14.02.2025, PASSED BY THE LEARNED SINGLE JUDGE IN W.P.
NO.49480/2017 AND CONSEQUENTLY ALLOW THE WRIT PETITION AS
PRAYED FOR AND ETC,.
THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS
DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
and
HON'BLE MRS. JUSTICE K.S. HEMALEKHA
ORAL JUDGMENT
(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
1. The appellant has filed the present appeal impugning an
order dated 14.02.2025 passed by the learned Single Judge in Writ
Petition No.49480/2017 [GM-RES].
2. The appellant filed the petition impugning a rejection letter
dated 16.07.2015, which rejected the appellant's application for
benefits under the Incremental Exports Incentivisation Scheme
[ IEIS ]. The rejection letter stated that the IEIS was not extended for
the period April 2014 to March 2015. The appellant contended that
this reason was patently erroneous, as the IEIS had in fact been
extended. However, the learned Single Judge found no merit in this
contention and accordingly rejected the petition.
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
3. The learned counsel for the appellant referred to a
notification dated 18.04.2013. The notification indicates that it was
issued in exercise of the powers conferred by Section 5 of the
Foreign Trade (Development and Regulation) Act, 1992 [ the FTDR
Act ] and by Para 2.1 of the Foreign Trade Policy, 2009-2014 [ FTP
2009 ]. By virtue of the notification, paragraph 3.14.5 was added to
FTP 2009 to provide an incentivisation scheme for incremental
exports. The relevant extract of paragraph 3.14.5, setting out the
exporters' entitlement under the scheme, is set out below:
" Entitlement
(a) Objective of the Scheme is to incentivize incremental
exports.
(b) An IEC holder would be entitled for a duty credit scrip
@ 2% on the incremental growth (achieved by the IEC
holder) during the current year (for example, say for
the period 01.04.2013 to 31.3.2014) compared to the
previous year (for example, say for the period from
01.04.2012 to 31.3.2013) on the FOB value of
exports. Incremental growth shall be in respect of
each exporter (IEC holder) without any scope for
combining the exports for Group Company.
(c) Incentive will be admissible only if the IEC holder has
achieved growth in the financial year 2013-2014 vis a
vis financial year 2012-2013. Quantum of benefit will
be calculated on the incremental growth achieved
subject to eligibility criteria given in para 3.14.4(d) of
FTP 2009-14. "
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
4. As is apparent from the above, the said scheme was
applicable for the current year, that is, 2013-2014. As stated
above, the object is to incentivise the incremental exports which
would be calculated on the basis of the quantum of exports in the
previous financial year, that is, 01.04.2012 to 31.03.2013.
5. The learned counsel for the appellant also referred to a
public notice dated 19.02.2014, issued under the powers conferred
by paragraph 2.4 of FTP 2009. By virtue of that notice, the
Handbook of Procedures 1 was amended, extending the Handbook
of Procedures until further orders.
6. The learned counsel for the appellant also refers to a
notification dated 19.02.2014 issued by the Central Government
which reads as under :
"To be published in the Gazette of India Extraordinary Part-II,
Section - 3, Sub-Section (II)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. 69 (RE-2013)/2009-2014
th
New Delhi, Dated: 19 February, 2014
S.O. (E) In exercise of powers conferred by Section 5 of the
Foreign Trade (Development & Regulation) Act, 1992 read
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
with paragraph 1.3 of the Foreign Trade Policy (FTP) 2009-
2014, as amended, the Central Government hereby makes an
amendment in paragraph 1.2(a) of FTP 2009-2014 (RE-2013)
st
by substituting the phrase "shall remain in force upto 31
March, 2014 unless otherwise specified" by the phrase "shall
remain in force until further orders."
2. The amended paragraph 1.2(a) of FTP 2009-14 (RE-
2013) would be as under:
1.2(a) "The Foreign Trade Policy (FTP) 2009-2014,
incorporating provisions relating to export and import
of goods and services, shall come into force with
effect from 27th August, 2009 and shall remain in
force until further orders. All exports and imports upto
th
26 August 2009 shall be accordingly governed by the
FTP 2004-2009."
Effect of this notification : The existing Foreign Trade Policy
2009-14 (RE-2013) was to remain in force until 31.3.2014. To
provide continuity in policy environment, this is being
extended beyond 31.3.2014 until further orders.
(Anup K. Pujari)
Director General of Foreign Trade
dgft[at]nic[dot]in
(Issued from File No. 01/94/180/219/AM 14/PC-4) "
7. The appellant's case that it is entitled to the benefits of IEIS
for financial year 2014-15 is founded on the notification dated
19.02.2014. The learned counsel for the appellant contends that
by virtue of the said notification, the FTP 2009, which included
IEIS, continues to be in force. He submits that no specific orders
have been passed for terminating the said scheme.
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
8. We find no merit in the aforesaid contentions.
9. The notification dated 19.02.2014 merely extended the
period for which FTP 2009 would remain in force. It did not amend
paragraph 3.14.5 of FTP 2009. Under paragraph 3.14.5(c), the
incentive is admissible only if the IEC holder has achieved growth
in the financial year 2013-2014 compared with the financial year
2012-2013. Thus, the IEIS, by its own terms, was confined to
incremental exports achieved in the financial year 2013-2014. The
extension of FTP 2009 beyond 31.03.2014 did not, by itself, extend
the IEIS to exports made in the financial year 2014-2015.
10. Section 5 of the FTDR Act empowers the Central
Government to formulate, announce and amend the Foreign Trade
Policy. The said Section is set out below :
" 5. Foreign Trade Policy.— The Central
Government may, from time to time, formulate and
announce, by notification in the Official Gazette, the foreign
trade policy and may also, in like manner, amend that
policy:
Provided that the Central Government may direct
that, in respect of the Special Economic Zones, the foreign
trade policy shall apply to the goods, services and
technology with such exceptions, modifications and
adaptations, as may be specified by it by notification in the
Official Gazette."
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HC-KAR
NC: 2026:KHC:61744-DB
WA No. 1447 of 2025
CNR: KAHC010570652025
11. The Central Government, in exercise of the power under
Section 5 of the FTDR Act, framed the Foreign Trade Policy 2015-
2020 [ FTP 2015 ]. The notification dated 01.04.2015 expressly
provides that FTP 2015 would come into force with effect from
01.04.2015. The said policy does not provide for any incentives
under IEIS. According to the Directorate General of Foreign Trade,
IEIS did not exist for the year 2014-2015, and the benefits
thereunder were not extended to exports made beyond
31.03.2014.
12. The learned counsel appearing for the DGFT also states that
benefits under IEIS have not been provided to any exporter.
13. In view of the above, we find no merit in the present appeal.
It is accordingly dismissed.
Sd/-
(VIBHU BAKHRU)
CHIEF JUSTICE
Sd/-
(K.S. HEMALEKHA)
JUDGE
CKL
List No.: 2 Sl No.: 12