Technocraft Industries (India) Limited Vs Union of India (Bombay High Court)
Bombay High Court directed customs department to come up with the solution to allow online amendment of shipping bill. So that transmitted amended shipping bill can be duly processed by DGFT.
Facts-
The Petitioner has two manufacturing units at MIDC, Murbad, where the Petitioner manufactures Scaffolding steel products and Drum Closures. During the period from December 2017 to July 2019, the Petitioner exported goods manufactured by it which were notified in Appendix-3B, and the Petitioner is eligible for the benefit of Merchandise Exports from India Scheme (MEIS) as per paragraph 3.03 of the Foreign Trade Policy 2015-2020.
While filling out the shipping bills online, the Petitioner erroneously clicked on the option “No” for the benefits of MEIS instead of “YES”. The shipping bills and the associated documents indicated that it was by mistake and that the Petitioner always wanted to take benefit of MEIS. To correct this mistake, the Petitioner approached the Customs Authority as per the provision of section 149 of the Customs Act, 1962, to seek an amendment to 12 shipping bills.
The Commissioner of Customs allowed the amendment to the shipping bills vide two certificates of amendment dated 7 October 2019 and 14 December 2020. Since there exists no facility in the software of the Customs Department for online amendment, physical certificates were issued to the Petitioner.
The Petitioner then approached Respondent No.2 and 3- Director General of Foreign Trade (DGFT) seeking the benefit of MEIS which communicated that In the automated environment, where issuance of MEIS is totally online, unless these S/bills are transmitted to DGFT, no further action is possible at DGFT end.
Conclusion-
When a software regulates the entire process, the DGFT may have a reasonable objection in processing the copies of the amended shipping bills not transmitted online to it. The Policy Relaxation Committee has correctly pointed out that in the computerized environment, when the governance of MEIS is online, it is difficult to proceed unless amended shipping bills are transmitted online. It is thus necessary for the Respondents-Customs Department to come up with a solution so that an issue such as the one presented before us does not recur and the parties entitled to the benefits of MEIS are not required to come to the Court for such trivial issues.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
Rule. Rule made returnable forthwith. Taken up for disposal.
2. The Petitioner has sought to quash and set aside the decision taken by the Policy Relaxation Committee in case No.71 filed by the Petitioner at its meeting held on 13 April 2022 and recorded in the Minutes of Meeting No.02/AM23. The Petitioner further prays that the Respondents should grant a reward under the Merchandise Exports from India Scheme in respect of the goods exported by the Petitioner under 12 shipping bills by issuing necessary scrip for Rs.15,24,334/- to the Petitioner, and to accept the amendment of 12 shipping bills by the Commissioner of Customs vide two amendment certificates dated 7 October 2019 and 14 December 2020 respectively.
3. The Petitioner is a company incorporated under the Companies Act, of 1956. The Policy Relaxation Committee under Respondent No.2 discharges duties under the Foreign Trade (Development and Regulation) Act, 1992. Respondent No.4 is the Commissioner of Customs, Jawaharlal Nehru Customs House, Nhava Sheva.
4. The Petitioner has two manufacturing units at MIDC, Murbad, where the Petitioner manufactures Scaffolding steel products and Drum Closures. During the period from December 2017 to July 2019, the Petitioner exported goods manufactured by it which were notified in Appendix-3B, and the Petitioner is eligible for the benefit of Merchandise Exports from India Scheme (MEIS) as per paragraph 3.03 of the Foreign Trade Policy 2015-2020.
5. While filling out the shipping bills online, the Petitioner erroneously clicked on the option “No” for the benefits of MEIS instead of “YES”. The shipping bills and the associated documents indicated that it was by mistake and that the Petitioner always wanted to take benefit of MEIS. To correct this mistake, the Petitioner approached the Customs Authority as per the provision of section 149 of the Customs Act, 1962, to seek an amendment to 12 shipping bills.
6. The Commissioner of Customs allowed the amendment to the shipping bills vide two certificates of amendment dated 7 October 2019 and 14 December 2020. For purpose of example, the certificate of 7 October 2019 is reproduced hereinbelow:
“CERTIFICATE OF AMENDMENT/ CONVERSION
M/s. Technocraft Industries (India) Limited approached this office with request to issue amendment certificate after amending S/B No. 1364458 dtd 06.12.2017, 1378853 dtd 06.12.2017, 1546729 dtd 14.12.2017, 1631780 dtd 18.12.2017, 1782827 dtd 26.12.2017, 070064 dtd 08.01.2018, 2142876 dtd 11.01.2018, 2212535 dtd 15.01.2018, 2235849 dtd 16.01.2018 and 1631707 dtd 18.12.2017.
