Target Plus Scheme was introduced by the Govt. in 2005-06 under Foreign Trade Policy 2004-09 and the objective was to accelerate growth in exports by rewarding Export Houses, who have achieved a quantum growth in exports. High performing Star Export Houses shall be entitled for a duty credit based on incremental exports substantially higher than the general annual export target fixed (Since the target fixed for 2004-05 is 17 %, the lower limit of performance for qualifying for rewards was pegged at 20% for the current year.)
All Export Houses which have achieved a minimum export turnover in free foreign exchange of Rs 10 crores in the previous licencing year (2003-04) are eligible for consideration under the Target Plus Scheme.
The entitlement under this scheme would be contingent on the percentage incremental growth in FOB value of exports in the current licencing year over the previous licencing year, as under:
|Percentage Increment growth||Duty credit entitlement as a % of the incremental growth)|
|20% and above but below 25%||5%|
|25% or above but below 100%||10%|
|100% and above||15% (of 100%)|
The following exports shall not be taken into account for calculation of export performance or for computation of entitlement under the scheme
Further, vide Notification no.48 (RE2005)/2004-09 dated 20 February,2006 Central Govt.inserted some items under ineligible category are as under:-
Further , vide Notification no.08 (RE2006)/2004-09 dated 12th June 2006 central Govt. makes the following amendments in Target plus Scheme for the exports effected during 01.04.2005 to 31.03.2006
"The entitlement under this scheme would be contingent on the minimum percentage incremental growth of 20% in FOB value of exports in the current licensing year over the previous licensing year, and the rate of entitlement shall be 5% of the incremental growth"
As results of retrospective said notifications the claims were denied by the department and matter reached to the Supreme Court.
The Supreme Court in a judgment in 2015 said that the Centre's notifications making certain products ineligible and reducing the rates should not be applied retrospectively and they would be effective only from the date of their issue.
Now, Union Cabinet has also approved the implementation of above Supreme Court's judgment on eligibility under the Target Plus scheme for exporters as per original provisions of the foreign trade policy.
Therefore, the claims will be considered as per original notifications till the date of the Notification No. 48 dated 20.02.2006 and Notification No. 8 dated 12.8.2006.
Please note the scheme has been discontinued w.e.f. 01.04.2006.
We may assist you in documentation, on line filing of application and Coordination with Concerned Authority for issuance of Target Plus Scheme.
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