Shine Flexible Prints And Packs Private Limited Vs Commissioner Of Customs (Kerala High Court)
Kerala High Court has issued a judgment concerning Shine Flexible Prints And Packs Private Limited, resolving a dispute over export obligations and customs duties that arose from the company’s utilization of the Advance Authorisation Scheme. The judgment was delivered in response to the Writ Appeal (WP(C) No. 10445 of 2023) challenging an earlier ruling from February 13, 2024, by a Single Judge.
Background of the Case
Shine Flexible Prints, a company engaged in manufacturing plastic packing materials, imports raw materials for its production processes and subsequently exports finished goods to various international markets. To facilitate its export activities, the company applied for and received Advance Authorisation Licences, which permitted it to import necessary materials without incurring customs duties. The licenses had a validity period of one year, with an obligation to complete exports within 18 months from issuance.
The licenses in question were issued on April 26, May 7, and August 16, 2019. The company complied with its export obligations between May 10 and September 25, 2019, exporting goods valued at USD 313,721.79 under six shipping bills. However, a significant error occurred: the shipping bills were filed under the All Industry Duty Drawback Scheme instead of the Advance Authorisation Scheme. This misclassification led to complications with the Director General of Foreign Trade (DGFT), who subsequently questioned the fulfillment of export obligations under the Advance Authorisation Scheme.
