CESTAT Chennai Dismisses Revenue Appeal in Target Plus Scheme Dispute

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 08.06.2025

CESTAT Chennai Dismisses Revenue Appeal in Target Plus Scheme Dispute

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai Bench – Court No. III has dismissed the Revenue’s appeal against M/s. Bharat Industrial Enterprises Ltd. (BIEL). The tribunal upheld the importer’s claim for duty exemption under the Target Plus Scheme (TPS), marking a significant judgment on the scope of “actual user” and “broad nexus” in post-export incentive schemes.

Case Background

• Respondent: M/s. Bharat Industrial Enterprises Ltd. (BIEL), New Delhi
• Appellant: Commissioner of Customs (Airport), Chennai
• Dispute: Use of Target Plus Licences to import plastic granules (e.g., HDPE, LDPE, PP) through high seas sales, where the imported goods were allegedly not used in BIEL’s exported product (rice).
• Revenue’s Claim: Misuse of TPS benefits due to lack of actual use of imported plastic granules in the exported rice products; alleged violation of Para 3.7.6 of FTP 2004–09, Notification No. 32/2005-Cus., and Customs Circulars 21/2007 and 45/2007.

This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

Source: CESTAT Chennai

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