Hon’ble High court Decision Regarding SEIS benefit can’t be denied for not having IEC when services rendered No IEC required for availing benefit of SEIS:
(Applicant –M/s. Smarte Solutions Pvt Ltd)
The eligibility for availing benefit under the SEIS was rejected merely on technicalities. One of the conditions to avail of the benefit under the SEIS is that the service provider should have an active IEC number at the time of rendering services for which the SEIS benefit have been claimed and accordingly an IEC number was obtained before applying for the benefit of the scheme. Further that the requirement of obtaining an IEC number at the time of rendering services was not a statutory requirement.
Highcourt Held that: As per Section 7 of the FTDR Act, it does not lay down that the IEC number is essential at the time of rending services of said specified kind. The requirement of IEC number is only for taking benefits under the scheme. Therefore, it is abundant clear that the eligibility criteria of the FTP has imposed additional restriction of having IEC number at the time of rendering services which was not intent or purport of the statute. The condition is against the principal legislation and therefore, it cannot be termed as of mandatory nature for availing benefits under the scheme.
