CA certificate for receipt of net forex acceptable in lieu of FIRCs: Gujarat HC

Whether the net foreign exchange received by the Petitioner, under the RBI’s approval for netting off, qualifies as “convertible foreign exchange” for export services?

Whether a CA's certificate, verifying net foreign exchange receipts, can be accepted as sufficient documentary proof in lieu of FIRCs?

[Judgment of the Hon'ble High Court of Gujarat, dated 26.03.2025, in R/Special Civil Application no. 13427 of 2024]

Refund is admissible even in case of receipt of net foreign exchange, since the mechanism of set off is approved by the RBI.

Further, CA's certificate, for the receipt of convertible foreign exchange for the export of the services, is sufficient in lieu of FIRCs. This was based on the Hon'ble Supreme Court's decision in Union of India v. Mangal Textile Mills (P.) Ltd. 2011 (269) E.L.T. 3 (S.C.), wherein the certificate issued by the CA is required to be considered by the authority as an authentic document and is bound to consider the same.

Apart from emphasizing the importance of substance over form, the aforesaid judgment highlights the evidentiary value of a CA certificate.