PIC Meeting was held under the Chairmanship of DGFT and list of officers present in the meeting is given in Annexure-I.
Case taken up for discussion and decision is as under and elaborated in Annexure-II
S.No. / Name of the firm / File Number / Subject/Request / Decision
1. / M/s.Vacmet Packings (India) Pvt. Ltd., Agra
M/s. Cannon Industries Pvt. Ltd., Ludhiana / 01/94/180/417/AM07
/PC-I / Clarification regarding Group Companies under Para 9.28 of the FTP for taking benefits under Target Plus Scheme. (Regarding claim for the year 2004-05 under Target Plus Scheme). (i.e. for any of the reward Schemes). / Clarification
Given as per the opinion
Of Ministry of Law
1. Shri R.S.Gujral, DGFT – in the Chair
2. Shri Shyam Aggawal, Addl. DG
3. Shri S.K. Prasad, Addl. DG
4. Shri Sanjay Ratogi, E.C.
- Shri S.K.Samal, Jt.DGFT
- Shri Anil Agarwal, Jt.DGFT
- Shri A.K. Singh, Jt.DGFT
- Shri O.P.Hisaria, Jt.DGFT
- Shri G.S.R. Reddy, Jt.DGFT
- Shri Tapan Mazumder, Jt.DGFT
Annexure –II
Details of decision take:
Case No. 1 : M/s.Vacmet Packings (India) Pvt. Ltd., Agra
M/s. Cannon Industries Pvt. Ltd., Ludhiana
File No. 01/94/180/417/AM07/PC-I
Meeting No.02/AM09 date: 23.06.08
Subject: Clarification regarding Group Companies under Para 9.28 of the FTP for taking benefits under Target Plus Scheme. (Regarding claim for the year 2004-05 under Target Plus Scheme). (i.e. for any of the reward Schemes).
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The Committee discussed the cases in detail. The Committee observed that applying on behalf of the ‘Group’ as a whole for Target Plus Scheme benefits is a facility that is available in terms of Para 3.7.4 of FTP RE2004 /FTP RE2005 to Status Holders within a Group. Individually the Status Holders are entitled to apply for Target Plus Scheme benefits. Clubbing as a Group Company, for all the Status Holders within the Group, would be resorted to only for higher quantum of benefits. While Policy is not explicit as to whether Proprietorships and / or Partnerships are to be excluded from the benefits of ‘Group Company’ as defined in Para 9.28 of the FTP, the opinion of M/o Law makes it clear that this additional benefit is to be restricted only to Companies registered under the Companies Act.
In view of above, the Committee decided that Proprietorships and / or Partnerships cannot form part of ‘Group Company’ and cannot apply for Target Plus Scheme benefits by clubbing the exports of Proprietorships and / or Partnerships when applying for the Group as a whole.
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