Konkan Specialty Polyproducts Private Limited Vs Union of India (Karnataka High Court)
Karnataka High Court held that inadvertent error in shipping bills, which are permitted to be corrected under section 149 of the Customs Act, cannot be allowed to defeat substantive claim of exports under MEIS. Accordingly, writ disposed of with direction to re-consider the claim.
Facts- The petitioner has preferred the present writ petition under article 226 of the Constitution of India. It is submitted that despite detailed representation to respondents No.2 and 3 including the documents mentioned in the representation comprising of Shipping Bills, NOC etc. the respondents No.1 to 3 have not taken any steps for the purpose of granting the benefit of MEIS in favour of the petitioner.
Conclusion- Bombay High Court in Portescap India Private Limited has held that where an exporter had inadvertently marked “N” (for No) instead of “Y” (for Yes) while filing shipping bills. The High Court held that such a mistake was purely procedural and, once corrected, could not extinguish substantive entitlement. The Court directed the authorities to process the claim, emphasising that the purpose of Chapter 3 of the FTP is to incentivise exports and that this object would be frustrated if inadvertent mistakes were treated as insurmountable.
