High Court dismisses writ petition, advises challenging orders in appropriate court. Emphasizes thorough review of response.

The Karnataka High Court dismissed the writ petition due to lack of territorial jurisdiction, prematurity, and advised the petitioner to challenge any adverse orders in the appropriate court. The Court refrained from assessing the merits of the case, highlighting the necessity for a thorough review of the petitioner's response to the show cause notice before making a determination.

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Issues:
1. Jurisdiction of the High Court to entertain the petition.
2. Interpretation of the "Served From India Scheme" under the Foreign Trade Policy.
3. Validity of the recovery notice issued by the Additional Director General of Foreign Trade.

Jurisdiction of the High Court:
The petitioner challenged a recovery notice issued by the Additional Director General of Foreign Trade. The respondent argued that the High Court had no territorial jurisdiction to entertain the petition as the cause of action did not arise within its jurisdiction. The respondent pointed out that the registered office of the petitioner was in Mumbai, and the show cause notice was also issued from Mumbai. The Court agreed that the cause of action arose in Mumbai, and therefore, the petition was not maintainable in the Karnataka High Court based on territorial jurisdiction.

Interpretation of the "Served From India Scheme":
The petitioner contended that duty credit scrips granted under the "Served From India Scheme" (SFIS) could be used for importing various goods. The petitioner claimed to have obtained duty credit scrips under the scheme without objections until a recovery notice was issued. The petitioner argued that the Policy Interpretation Committee wrongly interpreted the term "All India Service Providers" in the Foreign Trade Policy, leading to the recovery notice. The respondent defended the interpretation, stating it was aimed at promoting Indian brands abroad. The respondent emphasized that the Committee's interpretation was to enhance India's image globally. The respondent sought dismissal of the petition on the grounds of merit and delay.

Validity of the Recovery Notice:
The petitioner challenged the recovery notice issued by the Additional Director General of Foreign Trade to recover the value of duty credit scrips granted. The petitioner claimed the notice was issued erroneously and contrary to the law. The respondent argued that the Policy Interpretation Committee had correctly interpreted the policy to accelerate service exports and promote the "Serve from India" brand. The respondent contended that the petitioner was not entitled to relief and that the petition should be dismissed on merit and delay. The Court noted that the petition was premature as it was filed before the adjudication of the show cause notice and dismissed the writ petition, allowing the petitioner to challenge any adverse orders in the appropriate jurisdictional court.

In conclusion, the Karnataka High Court dismissed the writ petition due to lack of territorial jurisdiction, premature filing, and the need for the petitioner to challenge any adverse orders in the appropriate court. The Court did not delve into the merits of the case, emphasizing the need for proper examination of the petitioner's response to the show cause notice before forming an opinion.

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