Transferability of DCS under SFIS

[Dalia Felix]

An Indian company is running hotels and is eligible for Duty Credit Scrip (DCS) under the Served From India Scheme (SFIS) of FTP. As per para 3.12.7, 'the DCS is transferable within group company and Managed Hotels. One of the group companies are engaged in 'sea food' business.

Can the DCS of the hotel be used for importing fish (Chapter 3 of Tariff) for the sea food company of the group ?

AI Summary

Transferability of Duty Credit Scrip: group company use permits import of consumables under SFIS, subject to conditions.
The Served From India Scheme allows Duty Credit Scrip to be used for import of consumables, including food items, by qualifying hospitality establishments, subject to actual user conditions. The scheme also provides that entitlements and imported/procured goods are non-transferable except within a group company and to managed hotels; recent discussion treats the terms separately, supporting the view that a hotel's DCS may be used by a group company for importing consumables such as fish, subject to scheme conditions and any applicable guidance.