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 β Court No. III has dismissed the Revenueβs appeal against M/s. Bharat Industrial Enterprises Ltd. (BIEL). The tribunal upheld the importerβs claim for duty exemption under the Target Plus Scheme (TPS), marking a significant judgment on the scope of βactual userβ and βbroad nexusβ 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 BIELβs exported product (rice).
- Revenueβs 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 2004β09, 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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