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2024 Supreme(Guj) 2177
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, MAUNA M. BHATT, JJ.
M/S DEEPAK NITRITE LIMITED – Petitioner
Versus
UNION OF INDIA – Respondent
Special Civil Application No. 16051 of 2021
Decided On : 03-10-2024
Advocate Appeared:
For the Petitioners: ANANDODAYA S. MISHRA, HIMANSHI PATWA
For the Respondent: P.Y. DIVYESHVAR
The court affirmed that products under revised ITC HS Codes were entitled to MEIS benefits, rejecting the respondents' denial based on lack of notification and exclusion.
Headnote:(A) Constitution of India - Article 226 - Merchandise Exports From India Scheme (MEIS) - The petitioner sought a writ of mandamus for extending MEIS benefits for products Para Cumidine and DASDA with revised ITC HS Codes, which were not notified, leading to denial of benefits. (Paras 3, 4, 14, 50)
(B) MEIS Scheme - The court found that the products were part of the MEIS scheme and the denial of benefits was contrary to the notifications issued, as there was no specific exclusion of the products. (Paras 41, 50)
Facts of the case:
The petitioner, a manufacturer, was denied MEIS benefits for products due to non-notification of revised ITC HS Codes, despite previous eligibility.
Findings of Court:
The court ruled that the petitioner is entitled to MEIS benefits for the products as they were not excluded from the scheme.
Issues: The main issues were the entitlement to MEIS benefits for the revised ITC HS Codes and the validity of the respondents' denial of benefits.
Ratio Decidendi: The court held that the products remained eligible for MEIS benefits as there was no formal exclusion, and the notifications did not alter their status.
Result: Petition allowed.
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned advocate Mr. Anandodaya S. Mishra for the petitioner and learned advocate Mr. P.Y. Divyeshvar for the respondents.
2. Rule returnable forthwith. Learned advocate Mr. P.Y. Divyeshvar waives service of notice of rule on behalf of the respondents.
3. By this petition under Article 226 of the Constitution of India, the petitioner has prayed for the following reliefs:
“(A) That this Hon'ble Court may be pleased to issue an appropriate a Writ of mandamus or a Writ in the nature of mandamus or any other appropriate Writ, order or direction under Article 226 of the Constitution of India, ordering and directing the Respondents, their officers and subordinates to issue a Trade/Public Notice for extending the benefit under MEIS for products namely Para Cumidine and Diaminostilbene 2, 2-disulphonic acid (DASDA) with their revised ITC HS Codes of 2921 49 20 and 2921 59 40 respectively and also to extend such export benefit in an expeditious manner.
“(AA) That the Hon'ble Court may be pleased to issue and appropriate writ of mandamus or any other writ in the nature of mandamus or any other appropriate writ directing the Respondent No. 2 and/or 3 for issuance of an appropriate Notification reinstating the benefits and appropriate refund along with applicable interest under the MEIS Scheme.
(B) And pass, such further order/orders for granting reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case to meet the ends of justice.
(C) That the Hon'ble Court may be pleased to issue and appropriate writ of mandamus or any other writ in the nature of mandamus or any other appropriate writ as excluding the products i.e. Para Cumindine and DASDA classified under HS Code 29214921 and 29215940 retrospectively, even without expressed and categorical exclusion, under the Public Notice No. 12/2015-2020 dated 10.07.2020 as it being arbitrary, unlawful and violates Article 14 of Constitution of India.”
4. Brief facts of the case are that the petitioner was beneficiary of Merchandise Exports From India Scheme (MEIS) introduced in the Foreign Trade Policy (FTP) for the period of 2015-2020 by the Ministry of Commerce and Industry.
5. The incentives under MEIS is calculated as a percentage of the Freight on Board (FOB) value of the products at 2%, 3% or 5% in accordance with the Appendix 3B of Schedule 2 of the Scheme.
6. The petitioner was manufacturing products namely Diaminostilbene 2, 2-disulphonic acid (DASDA), Para Cumidine and 2 Ethyl Hexanol which were eligible for benefit of 2% prior to the revision of ITC HS Codes as per Table 2, Appendix-3B of the Scheme.
7. Table 2 of Appendix 3B of the Scheme provides for code wise classification of the reward rates prior to the revision of ITC HS Codes and the benefits availed by the petitioner for the products was in accordance with the said table as under:
| Products | Erstwhile ITC HS Code | MEIS Benefit | Description |
| Para Cumidine | 2921 43 90 | 2% | Other Toulidines & their Derivative Salts thereof |
| DASDA | 2921 59 90 | 2% | Other Aromatic Polyamines and their derivativesl; salts |
| 2 Ethyl Hexanol | 2920 90 99 | 2% | Other Esters of other inorganic acids of nonmetals & their salts |
8. By the Finance Act (No. 2) of 2019 dated 01.08.2019, the ITC HS Codes were revised in order to synchronize them with the international standards.
9. The Central Government vide Notification No. 38/2015-2020 dated 01.01.2020 made amendments to the ITC HS Code and the description of the products in accordance with the Finance Act (No. 2) of 2019.
10. Notification No. 38/2015-2020 has replaced old ITC HS Code under Table 2 of Appendix 3B of the MEIS Schedule as under:
| Products | Erstwhile ITC HS Code | Revised ITC HS Code | Description |
| Para Cumidine | 2921 43 90 | 2921 49 20 | Para Cumidine |
| DASDA | 2921 59 90 | 2921 59 40 | Diaminostilbene 2, 2-disulphonic |
