O.C. Sweaters LLP. Vs Union of India & Ors. (Delhi High Court)
The Delhi High Court set aside three orders passed by the Policy Relaxation Committee (PRC) after finding that the petitioner’s claims regarding technical glitches in ICEGATE transmission and repeated requests for personal hearing were not properly considered.
The petitioner, a garment manufacturer and exporter, had obtained an Advance Authorization dated 01.10.2021 for fulfilling an export order placed by a buyer in the USA. Instead of importing duty-free raw material, the petitioner opted for indigenous procurement and obtained an invalidation letter permitting domestic sourcing. Raw materials were procured through GST invoices, final goods were manufactured, and export shipments were made under Shipping Bill Nos. 6482393 and 6483064 dated 03.12.2021.
According to the petitioner, while attempting to export under the Advance Authorization Scheme using Customs Code No. 63, the authorization data was not transmitted to ICEGATE and Customs due to technical glitches attributable to the respondents. Since the export order was urgent and the delivery deadline was approaching, the petitioner filed the shipping bills under the zero-rated scheme while still mentioning the Advance Authorization details in the GST invoices and shipping bills. The petitioner repeatedly informed the authorities and ICEGATE about the issue and sought rectification, but no action was taken.
