Bombay High Court: An Exporter Can't be denied Benefit under MEI Scheme for Non-Declaration of Intent

Bombay High Court: An Exporter Can't be denied Benefit under MEI Scheme for Non-Declaration of Intent

Division Bench of the Bombay High Court (HC) in the case titled Portescap India Private Limited (Petitioner) v. Union of India & Ors. (Respondents) held that an exporter eligible under the Merchandise Exports from India Scheme (MEIS) cannot be denied benefit under the scheme on the ground of non-declaration of intent.

The judgment was pronounced by the Division Bench consisting Justices Milind N. Jadhav, and Ujjal Bhuyan. The HC held that except for the inadvertent mistake of non-statement of the declaration of intent, the petitioner is otherwise eligible and entitled to the reward under MEIS.

The HC relied on the judgment of the Madras High Court in the case titled Pasha International v. Commissioner of Customs, Tuticorn (2019(365) E.L.T. 669 (Mad.) and M/s. Greenglobe Exports India P Ltd v. Asst. Commission of Customs &Ors.( 2018-TIOL-94-SC-MAD-CUS).

A writ petition was filed by Portescap India Private Limited (petitioner) challenging the rejection of its applications filed under the Scheme by the respondents on the ground of mis/non-declaration of intent.

The Petitioner placed its arguments on various rulings including Mangalore Chemicals & Fertilizers Ltd v. Deputy Commissioner (2002-TIOL-234-SC-CX) wherein it was held that the intention of the legislature under the Scheme is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs and therefore any procedural irregularity or mistake committed by the claimant cannot be a ground for denial of benefit.

The HC passed the following orders-

- Various letters/orders issued by the Respondent No.4 rejecting the applications for reward/benefit under MEIS to the petitioner were quashed and set aside.

- Respondent Nos. 2 and 3 were directed to issue a no-objection certificate (NOC) to the petitioner within 4 weeks from receipt of a copy of the order, in respect of EDI online shipping bills which could not be amended to enable the petitioner to claim the reward under MEIS.

- The petitioner to fill fresh application within 2 weeks from the date of NOC, which shall inter alia be considered and disposed by the respondents in accordance with law within 8 weeks from the date of filing of a fresh application by the petitioner.

- The Petitioner/its authorized representative shall be granted an opportunity of personal hearing before a decision is taken on the petitioner's applications seeking benefit/reward under MEIS in respect of its shipping bills under FTP-2015-20.

The HC held that "The petitioner is entitled to the reward under MEIS in respect of its shipping bills wherein exports of notified goods/products with ITC(HS) code to the notified markets have been carried out by the petitioner under the FTP 2015-20."