The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has approved the
implementation of Supreme Court’s Judgment dated 27th October 2015
regarding Target Plus Scheme (TPS) 2004-09 in Civil Application No. 554
The revenue implication under the TPS arising from the Hon’ble Supreme
Curt’s Judgment is about Rs. 2700 crore.
Benefit is being extended to all the applicant exporters eligible as per
provisions of the initially notified TPS Scheme under FTP for the year
2005-06, and as per provisions of Foreign Trade Policy 2004-09
throughout the country.
The Target Plus Scheme (TPS) 2005-06 was already implemented partially.
However, the claims which were denied as a result of retrospective
Notification will be now settled as per direction of the Supreme Court
in the CA No. 554 of 2006. The scheme has been discontinued w.e.f.
The claims will be considered as per original notifications till the
date of the Notification No. 48 dated 20.02.2006 and Notification No. 8
dated 12.8.2006. The guidelines and modalities for processing the claims
will be worked out by the DGFT HQs in consultation with Deptt. of
Revenue and is proposed to be completed in one year from the date of
approval of the Cabinet.
The corrective measure will bring an end to multiple litigations with
the Government and the claims under the TPS will be issued as per
original provisions under Foreign Trade Policy in compliance with the
decision of the Hon’ble Supreme Court.
In the Civil Appeal No. 554/2006 titled DGFT v/s Kanak Exports & Ors.,
the Hon’ble Supreme Court, in its Judgment dated 27.10.2015 gave verdict
on the Target Plus Scheme for Export Promotion. It held that the
Notification No. 48/2005 dated February 20, 2006 (certain products were
made ineligible) and Notification No. 8/2006 dated June 12, 2006 (rates
were reduced to 5% from the earlier 5, 10 and 15%) related to the Target
Plus Scheme (TPS) could not be applied retrospectively and they would be
effective only from the date of their issue.