SEIS Misdeclaration Fallout

In a significant ruling on export incentive misuse, the Tribunal has reaffirmed that once SEIS scrips are cancelled ab initio by DGFT on grounds of misdeclaration, the entire edifice of duty exemption collapses.

Section 28AAA operates with full force to recover duty from the scrip holder, even where utilisation is by third parties.

However, the decision draws a nuanced distinction in personal liability, holding that corporate officers cannot be mechanically penalised absent demonstrable independent culpability.

This ruling sharpens the compliance threshold for service classification in FTP-linked benefits while offering measured relief in personal penalty exposure.