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IN THE HIGH COURT OF DELHI AT NEW DELHI
Vibhu Bakhru, Amit Mahajan, JJ.
M/s. Rk Agroexport Private Limited – Appellant
Versus
Union of India & Ors. – Respondents
W.P.(C) 1184 of 2021
Decided On : 10-05-2023
MEIS - Foreign Trade Policy - Section 149 of Customs Act, 1962 - W.P.(C) 1184/2021 - The court discussed the denial of MEIS benefit to the petitioner due to an inadvertent error in the reward column of Shipping Bills. The court referred to the decision in Jubilant Biosys Limited v Directorate General of Foreign Trade and Others and the advisory dated 11.04.2023 issued by the Directorate General of Foreign Trade. The court directed the respondents to follow the methodology set out in the advisory and process the petitioner's request for MEIS benefits.
Fact of the Case:
The petitioner challenged the denial of MEIS benefit due to an inadvertent error in the reward column of Shipping Bills.
Finding of the Court:
The court allowed the petition and directed the respondents to follow the methodology set out in the advisory dated 11.04.2023 and process the petitioner's request for benefits under the MEIS.
Issues: Denial of MEIS benefit, inadvertent error in the reward column of Shipping Bills.
Ratio Decidendi: The court relied on the decision in Jubilant Biosys Limited v Directorate General of Foreign Trade and Others and the advisory dated 11.04.2023 issued by the Directorate General of Foreign Trade to allow the petition and direct the processing of the petitioner's request for MEIS benefits.
Final Decision: The petition is allowed, and the respondents are directed to follow the methodology set out in the advisory dated 11.04.2023 and process the petitioner's request for benefits under the MEIS.
JUDGMENT
Vibhu Bakhru, J. (Oral)
CM APPL. 24118/2023a
1. The petitioner has filed the present application praying that the hearing fixed on 08.08.2023, be advanced.
2. For the reasons stated in the application, the same is allowed.
3. With the consent of counsel for the parties, the petition is taken up for hearing. The date already fixed, that is, 08.08.2023, stands cancelled.
W.P.(C) 1184/2021
4. The petitioner has filed the present petition impugning an order dated 10.10.2019, passed by respondent No. 3 and an order dated 22.11.2019, passed by respondent No. 5 (hereafter `impugned orders').
5. In terms of the impugned orders, the petitioner has been denied the benefit of Merchandise Exports from India Scheme (hereafter `MEIS') in respect of certain Shipping Bills (13 in number) as contemplated under the Foreign Trade Policy, 2015-2020. The petitioner has been denied the said benefit for the reasons that the petitioner had checked the box `N' (for No) instead of `Y' (for Yes) in the reward column pertaining to MEIS. The petitioner claims that the same is an inadvertent error. The petitioner had sought to correct the said mistake, however, the same was not permitted.
6. Mr. Asheesh Jain, learned counsel appearing for the respondents, submits that the controversy involved in the present petition is covered by the decision of a coordinate Bench of this Court in Jubilant Biosys Limited v Directorate General of Foreign Trade and Others, W.P.(C) 14754/2022. Pursuant to the orders passed in the said petition, a committee of officers was constituted to consider whether the benefit of MEIS could be extended to the petitioner in that case. The said committee took a lenient view and the petitioner in W.P.(C) 14754/2022 (Jubilant Biosys Limited), which was earlier denied the benefit of MEIS on similar grounds as in the present petition, was granted the benefit of MEIS. The relevant extract of the order dated 16.02.2022, passed by this Court in Jubilant Biosys Limited vs. Directorate General of Foreign Trade and Others (supra), reads as under:
"6. This Court is informed that in compliance with the aforesaid order, a meeting of concerned officers was held on 08.12.2022. A copy of the minutes of the said meeting had been handed over to this Court. Paragraph nos. 4 and 5 of the said minutes read as under:
"4. In exceptional cases the customs as per defined procedure amends the SBs from `N' to `Y' in MEIS SBs under section 149 of Customs act. However post EGM such amendments are done in a manual mode and no electronic transmission of such manual amendments is possible to the DGFT server.
5. Nothing the Hon'ble Court's directions in this individual case it was decided that Customs will transmit the `N' SBs to DGFT server through a manual intervention at ICEGATE, DGFT based on the electronic transmission and keeping in view the manual amendments made, will process the case for further for grant of MEIS benefits as exceptional manner."
7. In view of the aforesaid decision, respondent no.4 shall transmit the corrected bills as decided in terms of paragraph no. 5 of the minutes, as stated above, within a period of two weeks from today. The petitioner's claim for benefits under MEIS shall be decided within a period of six weeks thereafter."
7. Learned counsel for the respondents, has also drawn the attention of this Court to the decision of Bombay High Court in Technocraft Industries (India) Ltd. vs. The Union of India and Ors., W.P.(C) 3202/2022, decided on 12.04.2023. The said order sets out the advisory dated 11.04.2023, issued by the Directorate General of Foreign Trade. The said advisory is reproduced below:
"Date: 11th April, 2023
Advisory No.: 07/2023
Category: Exports
Issued by: DgoS, ICES
Subject: Transmission of Shipping Bills from systems' backend to DGFT for MEIS benefits in certain cases-reg.
Various references have been received regarding post EGM amendment of Shipping Bills where the customs authorities have allowed amendment of shipping
The court's decision was influenced by the interpretation of the Foreign Trade Policy, 2015-2020, and the application of Section 149 of the Customs Act, 1962 in allowing the petitioner's request for ....
Inadvertent errors in marking 'Y' or 'N' in the reward column of shipping bills should not result in the denial of MEIS benefits.
The judgment emphasizes the mandatory requirements under the MEIS scheme and the need for correction of shipping bills by the Customs Department before seeking relief from the DGFT.
Procedural lapses in declaring intent on shipping bills do not negate eligibility for MEIS benefits when substantive conditions are satisfied.
Procedural mistakes should not deprive exporters of the benefit of the reward under the Merchandise Exports from India Scheme (MEIS) if they have fulfilled their export obligations.
Inadvertent procedural errors corrected under legal provisions do not invalidate substantive claims under export incentive schemes; administrative processes should facilitate, not hinder, the realiza....
Foreign Trade Policy - No time limit can be read into the said provision nor can it be introduced by way of a circular. It is well-settled that a subordinate legislation cannot travel beyond parent s....
Did the CESTAT fall into error in upholding the denial of the petitioner’s claim for amendment of its shipping document under section 149 of the Customs Act.
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