ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 10.06.2025
CESTAT Chennai Upholds Target Plus Scheme Benefits
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chennai dismissed five appeals filed by the Revenue against M/s Shakthi Knitting Ltd. and its directors. The core issue revolved around the alleged misuse of the Target Plus Scheme (TPS) through import of plastic granules purportedly unrelated to their exported productβready-made garments.
Background of the Case
The Directorate of Revenue Intelligence (DRI) initiated an investigation alleging that Shakthi Knitting Ltd. misused the TPS license to import PP/PE plastic granules, claiming they lacked a “broad nexus” with the exported garments. The DRI further alleged misrepresentation in export data submitted to DGFT, and sought cancellation/modification of the license under Notification No. 32/2005-Cus. and Circular 21/2007-Cus..
However, the DGFT itself responded in writing that the duty credit was rightly issued under the Target Plus Scheme, confirming compliance with the FTP norms.
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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