Gujarat High Court Mandates Grant of RoDTEP Scheme Benefits to Sugar Exporters Despite Policy Restrictions

Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation

Date: 25.04.2026

Gujarat High Court Mandates Grant of RoDTEP Scheme Benefits to Sugar Exporters Despite Policy Restrictions

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In a landmark judgment, the Gujarat High Court addressed the contentious issue of whether sugar exporters are entitled to benefits under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme, despite changes in export policy that categorized sugar as a “restricted” item. This article provides a detailed overview of the case, the arguments presented, and the implications of the court’s decision for exporters and policymakers.

Background: RoDTEP Scheme and Export Policy Changes

The RoDTEP scheme was introduced to incentivize exporters by reimbursing duties and taxes that are not refunded through other mechanisms. Sugar exporters, including M/S Satyendra Packaging Limited, had been claiming rebates under this scheme for exports made between January 1, 2021, and December 13, 2022.

However, the government revised the export policy for sugar via Notification No.10/2015-2020 dated May 24, 2022, moving sugar (ITC HS Codes 17011490 and 17019990) from the “free” category to “restricted”. Export was permitted only with specific permission from the Directorate of Sugar, Department of Food and Public Distribution.

The Petitioners’ Case

The petitioners argued that:

• They exported sugar with the required permissions from the Directorate of Sugar.
• The denial of RoDTEP benefits was arbitrary, as they complied with all policy conditions and government notifications.
• The issue was already settled in a previous Gujarat High Court decision (M/s. Shree Renuka Sugars Ltd vs. Union of India), which allowed RoDTEP benefits for similar exports.

Government’s Stand

The government contended that:

• As per paragraph 4.55(iv) of the RoDTEP scheme, products listed as “restricted” in Schedule 2 of the Export Policy are ineligible for RoDTEP benefits.
• The change in policy was a matter of public interest and within the government’s prerogative, citing the Supreme Court’s decision in Kasinka Trading vs. Union of India.

Court’s Analysis and Decision

The High Court found that:

• The facts of the case were identical to the earlier Shree Renuka Sugars Ltd decision, which permitted RoDTEP benefits for sugar exporters who complied with government conditions.
• The government had issued multiple notifications and circulars allowing export of sugar with specific permissions and quota allocations.
• The basic objective of the RoDTEP scheme is to incentivize exporters, and denying benefits to those who fulfilled all conditions was unjustified.

Key Directions Issued by the Court

• Petitioners are entitled to claim RoDTEP benefits for sugar exports, even if the claim was not mentioned in the shipping bills.
• Applications for RoDTEP benefits will not be time-barred due to delayed claims.
• Authorities must process claims irrespective of their mention in shipping bills and provide a hearing if adjudicatory proceedings are required.
• The respondents (government authorities) are directed to grant RoDTEP benefits to petitioners who exported sugar with specific permissions as per relevant notifications.

Implications for Exporters and Policy

This judgment clarifies that exporters who comply with all government conditions and obtain necessary permissions should not be arbitrarily denied incentives under schemes like RoDTEP. It reinforces the principle that policy changes must be implemented fairly and transparently, ensuring that genuine exporters are not penalized.

Conclusion

The Gujarat High Court’s decision is a significant victory for sugar exporters and sets a precedent for similar cases involving export incentives. It underscores the importance of judicial oversight in ensuring that government policies are applied justly and that exporters receive the benefits they are entitled to under schemes like RoDTEP.

Source: Gujarat High Court

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