The Telangana High Court has set aside a key policy circular that curtailed export incentive benefits, granting major relief to Adani Gangavaram Port Limited (AGPL).
Justice Nagesh Bheemapaka allowed a writ petition filed by AGPL and quashed the policy circular dated May 22, 2018, along with the consequential show cause notice dated October 20, 2023, the Order-in-Original dated April 16, 2024, and the Customs show cause notice dated June 21, 2024. The court also struck down all recovery proceedings initiated pursuant to these actions and directed authorities to refund ₹2.95 crore with applicable interest within four weeks.
AGPL had been granted benefits under the Service Exports from India Scheme (SEIS) as part of the Foreign Trade Policy 2015–2020. The dispute arose after the Directorate General of Foreign Trade issued Circular No. 06/2018, restricting SEIS eligibility to “actual service providers” and excluding port operators from availing the incentive.
The High Court noted that the impugned circular had already been struck down by the Bombay High Court in Atlantic Shipping Pvt. Ltd. v. Union of India (March 9, 2021) and by the Karnataka High Court in ECL Puyvast (India) Pvt. Ltd. v. Union of India (April 25, 2024). In the absence of any stay by the Supreme Court, the bench held that authorities could not rely on a circular already declared ultra vires.
Rejecting the respondents’ contention that the petitioner had an alternative remedy, the court observed that writ jurisdiction is maintainable where action is founded on an instrument that has already been held invalid. It further ruled that the retrospective withdrawal of SEIS benefits—granted after due scrutiny—was arbitrary and violative of principles of natural justice, particularly since the impugned order had not been properly served.
Holding that authorities cannot continue proceedings based on a quashed policy, Justice Bheemapaka granted full relief to AGPL, reinforcing judicial scrutiny over retrospective curtailment of export incentives.