Case Law Details

Case Name : Tru-Sprag Freewheels Private Limited Vs Union of India and Ors. (Bombay High Court)
Appeal Number : Writ Petition No. 1207 of 2022
Date of Judgement/Order : 02/05/2023
Related Assessment Year :

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.

The matter was argued by Ld. Counsel Bharat Raichandani.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

On 14 March 2023, the following order was passed :-

1. In O.S.Writ Petition No.3202 of 2022 in the case of Technocraft Industries (India) Limited Vs. The Union of India and others we had passed a detailed order on 27 February, 2023 in respect of the methodology to be evolved so that the present issues do not recur and had placed the petition “For Directions” on 13 March 2023, wherein we were informed that joint meeting had taken between the officers of the Customs Department and Director General of Foreign Trade and not only the issue regarding the petitioner therein has been resolved but the changes in the software system have been brought about.

2. Stand over to 12 April 2023, to be heard alongwith O.S. Writ Petition No.3202 of 2022.”

Thereafter, on 12 April 2023, the following order was passed :-

“ Learned Counsel for the Petitioner has brought to our notice the Advisory issued by the Directorate General of Systems and Data Management dated 11 April 2020.

2 Respondents will examine the Petitioner’s claim in light of the Advisory issued and inform the Court of the stand to be taken by the Respondents.

3. List the Petition on 2 May 2023.”

2. The learned Counsel who appears for Respondent Nos. 1 and 2 states that the Customs Department has amended the shipping bill and the same is forwarded to the Director General of Foreign Trade (DGFT) and the necessary action will be taken by the DGFT. The learned Counsel for the Petitioner states that, in view of this development, the cause raised in this Petition stands redressed.

3. The Writ Petition is accordingly disposed of.

Download Judgment/Order

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