RoSCTL scheme for export of garments and made-ups – Analysis
The Ministry of Textiles has announced the Scheme called ‘Rebate of State and Central Taxes and Levies’ (RoSCTL for short) for Export of Garments and Made-ups falling under the Chapter 61, 62 and 63 of ITCHS, on 07.03.2019.
Date & Time
09
Apr 2020 | 4:00 PM - 5:00 PM
This scheme is seen as an alternative scheme to Merchandise Export from India Scheme (MEIS), which is allegedly against the Agreement on Subsidies and Countervailing Measures under WTO. Accordingly, the DGFT vide Public Notice dated 29.01.2020 has withdrawn the MEIS scheme for goods falling under the Chapter 61, 62 and 63 of ITCHS and has forced every exporter of goods falling under the Chapter 61, 62 and 63 of ITCHS to opt for RoSCTL Scheme. Under the scheme, duties, taxes and levies are rebated to the exporter in the form of duty credit scrips.
RoSCTL Notification dated 02.05.2019 issued by the Ministry of Textiles, disentitles the following exports from claiming RoSCTL benefit.
- Goods manufactured partly or wholly in a warehouse under Section 65 of the Customs Act, 1962;
- Goods manufactured or exported in discharge of export obligation against an Advance Authorization (AA), except Special AA for Textile products, or DFIA issued under the FTP;
- Goods manufactured or exported by an EOU and SEZ/FTWZ unit.
- Goods manufactured or exported availing the benefit of the Notification No. 32/1997-Customs dated 1st April, 1997.
Textile Industry is already in troubled waters due to withdrawal of MEIS Scheme. Restriction on EOUs, SEZs and certain other category of exporters to claim the benefit of RoSCTL Scheme would defeat basic objective of scheme and accelerate the collapse of the industry.
- Can Government reconsider such restrictions and withdraw retrospectively?
- Whether the exporters have option to knock the doors of High Courts?
- Is there an alternative to the exporter to stake his claim and right?
Speakers
- Mr. T. Viswanathan, Principal Partner, L&S Attorneys
