Kwalitee Fabs Vs Commissioner of Customs (Madras High Court)
Madras High Court held that MEIS would clearly qualify as an instrument u/s. 28AAA of the Customs Act bestowing financial or fiscal benefits, however, only Director General of Foreign Trade [DGFT] is empowered to cancel or suspend the same.
Facts- The appellant is an exporter of textiles goods. They have been manufacturing both powerloom as well as handloom goods. The respondent initiated proceedings against the appellant on the ground that they had misdeclared their goods. After issuing show cause notice, the impugned assessment order dated 30.09.2024 was passed calling upon the appellant to pay a sum of Rs.1,92,88,594/- being the value of ineligible MEIS duty scrips and also redemption fine as well as penalty.
The writ petition was dismissed on the ground of availability of alternative remedy. Challenging the same, this writ appeal has been filed. The issue raised in the writ appeal is regarding the power and jurisdiction of the customs authorities to take action u/s. 28AAA of the Customs Act, 1961 without there being a prior determination by DGFT in terms of the relevant provisions of Foreign Trade Development and Regulation Act, 1992 and the Rules and the foreign Trade Policy framed thereunder.
