Deemed Export Proof

In Holoflex Ltd v. Union of India, the Delhi High Court dealt with whether supplies made by a Domestic Tariff Area (DTA) unit to an SEZ unit qualify as “deemed exports” under the Foreign Trade Policy (FTP), and consequently, what constitutes valid proof of fulfilment of export obligation under the EPCG Scheme.

The Revenue sought review of an earlier judgment which had accepted invoices and Bank Realisation Certificates (BRCs) as sufficient proof. 

The Court dismissed the review, holding that supplies to SEZ qualify as deemed exports under the FTP and that procedural requirements such as furnishing a Bill of Export cannot override substantive compliance.