Hyderabad: Adani Gangavaram Port Limited (AGPL) has secured relief from the High Court, which set aside a 2018 circular issued by the Director General of Foreign Trade (DGFT) restricting benefits under the Service Exports from India Scheme (SEIS).
The court also directed authorities to refund Rs. 2.95 crore paid by the Adani-operated port, along with interest, within four weeks.
The circular had imposed restrictions limiting SEIS benefits to “actual service providers,” effectively excluding certain categories such as partial port operators. Challenging this, AGPL filed a petition arguing that the DGFT had introduced new eligibility criteria that were not part of the Foreign Trade Policy.
The matter was heard by Justice Nagesh Bheemapaka. Counsel for the petitioner argued that only the central government has the authority to amend or introduce eligibility conditions under the Foreign Trade Policy, and that the DGFT cannot make such substantive changes through executive circulars.
After hearing the arguments, the court held that the DGFT had exceeded its powers. It ruled that SEIS benefits cannot be restricted solely to actual service providers and must also apply to partial port operators.
Court orders refund, penalty
The court further ordered the refund of Rs. 2.95 crore paid by AGPL, which included a penalty of Rs. 50 lakh imposed under the now-invalidated circular, reinforcing that executive authorities must operate within the limits of the policy framework.
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