Case Law Details
Tru-Sprag Freewheels Private Limited Vs Union of India and Ors. (Bombay High Court)
In the Tru-Sprag Freewheels Pvt Ltd vs. Union of India and Others case, the petitioner, an exporter, faced a denial of benefits under the EPCG Scheme due to an inadvertent error in the shipping bill filing. Despite approaching the DGFT and customs authorities, the petitioner’s efforts to rectify the error proved futile, leading to the filing of a petition. The petitioner relied on a previous judgment of the Bombay High Court in the Portescap vs. UOI case.
The Bombay High Court intervened and directed a joint meeting between customs and DGFT authorities to address not only the petitioner’s issues but also those faced by all exporters. As a result, the Directorate General of Systems and Data Management issued a circular clarifying that procedural or system errors committed by exporters would be rectified. This clarification ensured that exporters would receive the necessary benefits by amending the shipping bill, with consequential benefits granted by the DGFT.
In light of this circular and subsequent benefit granted to the petitioner, the court disposed of the petition.
Conclusion: The Tru-Sprag Freewheels Pvt Ltd vs. Union of India and Others case before the Bombay High Court emphasized the need for a joint meeting between customs and DGFT authorities to address issues faced by exporters. The court’s direction led to the issuance of a clarifying circular, which rectified procedural/system errors committed by exporters. As a result, the petitioner received the necessary benefits, and the petition was disposed of.
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