Oder date – 27 July 2022

Facts – 

• The Petitioner, Smarte Solutions Pvt. Ltd is engaged in providing high quality data services, which are eligible for SEIS benefits under the Foreign Trade Policy 2015-20.
• The Petitioner tried to file SEIS application for the year 2015 – 2016 and 2016-2017 but failed to file online, approaching the computer cell of Director General of Foreign Trade did not lead to success either. Later, they opt for offline mode. 
• The application was disposed of on grounds that the petitioner should have held a valid Import Export Code (IEC) number at the time of rendition of export services vide order dated 14/11/2019. They later filed a review application and it was similarly disposed of vide order dated 03/03/2020. 
• Being aggrieved, filed this writ petition. 

Issue –

• Whether IEC number is mandatory for availing benefits under the Services Export from India Scheme?

Order –

• The Court observed that Section 7 of the FTDR Act, provides an exception from mandatory requirement of IEC number in cases of import or export of services or technology. Relying on Supreme Court Employees Welfare Association Vs. Union of India, concluded that the condition is against the principal legislation and therefore, it cannot be termed as of mandatory nature for availing benefits under the scheme.
• The court allowed the petition and direct to consider petitioner’s application without insisting for an active IEC number at the time of rendering services and to take appropriate decision within three months from the date of receipt of this order.