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628 EXCISE LAW TIMES [ Vol. 372

(ii) the import had a total free foreign exchange earning of at least ` 10
Lakhs in preceding financial year.
It is important to note that paras 3.6.4.2 and 3.6.4.3 of the FTP 2004-2009, extended
the benefit of the SFIS to all service providers.
7. As against this, para 3.12.2 of the FTP 2009-2014 extended the benefit
of the SFIS only to Indian service providers, the other eligibility conditions remaining
the same.
8. On 22nd April, 2009, a communication was addressed, to Respondent
No. 1, rejecting its claim, for grant of SFIS benefits, (despite the fact that the
scrips already stood issued to it) for the following reasons :
“In this case it seems your firm is not an Indian brand or company and does
not contribute in creation a powerful & unique served from India brand.
Hence the objective of SFIS Scheme to accelerate growth in export of Ser-
vices from India which creates a powerful and unique served from India
brand is not achieved. Hence your case is not covered under any category
of para 9.53 of FTP and also does not meet the basic objective for grant of
SFIS benefit.”
9. The above decision was, admittedly, taken pursuant to deliberations
by the Policy Interpretation Committee (PIC), constituted to interpret the provisions
of the FTP. One of the issues, on which PIC deliberated, was whether Respond-
ent No. 1, being an Indian subsidiary of a foreign country, was entitled to the
benefit of SFIS. The minutes of the meeting, which took place, on 27th December,
2011, read thus :
“PIC considered the issue pertaining to request for grant of SFIS by the
above companies. PIC also referred its earlier decision of 27-1-2009 in the
case of M/s. Federal Express Corporation and M/s. UPS Jet Air Express
Pvt. Ltd.
2. Para 3.12.1 of the Foreign Trade Policy states the objective of SFIS
Scheme as -
“Objective is to accelerate growth in export of services so as to cre-
ate a powerful and unique ‘Served From India’ brand, instantly rec-
ognized and respected world over.”
Therefore, the objective of the scheme inter alia is to accelerate growth in
export of services so as to create a powerful and unique ‘served from India
brand’ instantly recognized and respected world wide.
3. The Committee noted that the objective of the Foreign Trade Policy is to
encourage essentially Indian brands. The Foreign Trade Policy did not in-
tend to incentivise any brand which is created outside India. Such Indian
brand should be so unique as to be easily recognizable and create a distinct
identity for itself both domestically and internationally. Essentially such a
brand should enhance the Indian image and hence the Foreign Trade Policy
uses the phrase “Served from India” brand.
4. The Committee, therefore, noted that the names of companies men-
tioned in the agenda represent brands not identified as Indian Brands. They
may be known in the global market. Accordingly, the Committee decided
that grant of SFIS benefits to the above companies would not be harmoni-
ous with the intent behind the Scheme.”
(Emphasis supplied)
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