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Target Plus Scheme requires a broad nexus, not a strict...

Target Plus Scheme broad nexus allows grouped input linkage, while absent intent defeats extended customs limitation and penalties.

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Customs September 11, 2026 Case Laws HC
Target Plus Scheme requires a broad nexus, not a strict product-to-product nexus, between duty-free imported inputs and exports within the product group specified in the duty credit certificate. Continuous cast copper rods could therefore be imported duty-free where linked to the Engineering Products group, but not merely because they bore nexus to one of several groups covered by a certificate. Extended limitation and customs penalties require intent to evade duty through fraud, collusion, wilful misstatement or suppression. Policy ambiguity, a bona fide exemption understanding, valid uncancelled certificates, and export documents already held in Customs records precluded such findings. The duty demand and consequential penalties were set aside.

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Acts Income Tax