In a potential relief for the sugar industry, about two dozen exporters are awaiting government action on their pending Remission of Duties and Taxes on Export Products (RoDTEP) scheme payments, reported CNBCTV18.
According to sources speaking with CNBC-TV18, “After receiving relief from the Supreme Court, the exporters are now in limbo as the government has yet to provide clarity on when it will settle the outstanding RoDTEP dues. Although some partial payments have been made, significant amounts remain unpaid.”
Exporters are actively engaging with the revenue department, hoping for a swift resolution of all outstanding payments, the sources added on condition of anonymity.
In July, the Supreme Court dismissed a Special Leave Petition (SLP) filed by the revenue department challenging a Gujarat High Court ruling favoring the sugar industry. The Gujarat High Court had determined that Indian sugar exporters were entitled to benefits under the RoDTEP scheme.
The Supreme Court, led by Justices BV Nagarathna and Dipankar Dutta, rejected the revenue department’s SLP, which had been filed against the Gujarat High Court’s favorable order for HRMM Agro Overseas.
Various petitioners had approached the Gujarat High Court and Bombay High Court to secure RoDTEP benefits for sugar exports.
In November 2023, the Gujarat High Court issued a favorable ruling for the sugar exporters. Although the revenue department’s SLP was filed with an 87-day delay, the Supreme Court condoned this delay and issued favorable orders for the exporters. The Court decided not to interfere with the Gujarat High Court’s decision, thereby dismissing the revenue’s special leave petition.
Industry estimates suggest that more than two dozen exporters have had their benefits reduced, with potentially thousands of crores still unpaid.
As per news report by CNBCTV18, the core issue was whether RoDTEP benefits could be denied for goods classified as restricted, even when their export was permitted with specific permission from the Directorate of Sugar, Department of Food and Public Distribution.
