Case Law Details

Case Name : Davinci Leather Pvt. Ltd. Vs Commissioner of Customs (Madras High Court)
Appeal Number : WP No. 4192 of 2020
Date of Judgement/Order : 21/02/2020
Related Assessment Year :

Davinci Leather Pvt. Ltd. Vs Commissioner of Customs (Madras High Court)

The petitioner, engaged in the export of leather shoes, had filed a shipping bill claiming duty drawback. The export transaction, the petitioner states, was also entitled for benefit under the Merchandise Exports from India Scheme (MEIS) notified under the Foreign Trade Policy. However, at the time of filling of the shipping bill, the petitioner had inadvertently omitted to select ‘YES’ as an option for availing the MEIS benefit, on the online platform.

This very issue as to whether the inadvertent error of not claiming benefit under the MEIS was fatal to the claim itself has come to be considered by learned single Judges of this Court in Pasha International V. Commissioner of Customs, Tuticorin (2019 (365) ELT 669) and Global Calcium Pvt. Ltd. V. Asst. Commissioner (order dated 10.06.2019 in W.P.No.3321 of 2019) in favour of the petitioner.

As far as entitlement itself is concerned, I have already observed that the benefit of the Scheme would be available to the petitioner conditional upon verification and acceptance of such claim by the DGFT.

In the light of the discussion as above, the impugned order rejecting the request for amendment is quashed and a mandamus issued to the second respondent to amend the shipping as sought for, by the petitioner. The Writ Petition is allowed. No costs.

FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT

Mr.Rajnish Pathiyil, learned Central Government Standing Counsel accepts notice for the respondents.

2. Heard learned counsel for the petitioner and learned counsel for the respondent.

3. By consent expressed by both learned counsel, the writ petition is disposed even at the stage of admission.

4. The petitioner, engaged in the export of leather shoes, had filed a shipping bill claiming duty drawback. The export transaction, the petitioner states, was also entitled for benefit under the Merchandise Exports from India Scheme (MEIS) notified under the Foreign Trade Policy. However, at the time of filling of the shipping bill, the petitioner had inadvertently omitted to select ‘YES’ as an option for availing the MEIS benefit, on the online platform.

5. The entitlement to MEIS or otherwise is a matter to be examined by the Director General of Foreign Trade (DGFT) on an application made in this behalf by the petitioner. The DGFT, when approached, advised the petitioner to have the shipping bills amended by the Customs Authorities.

6. An application had thus come to be filed by the petitioner setting out the sequence of events as above and seeking amendment of the Bill containing the error. Upon consideration of the request made, the second respondent rejected the same by order dated 18.11.2019, as against which the present Writ Petition is filed.

6. This very issue as to whether the inadvertent error of not claiming benefit under the MEIS was fatal to the claim itself has come to be considered by learned single Judges of this Court in Pasha International V. Commissioner of Customs, Tuticorin (2019 (365) ELT 669) and Global Calcium Pvt. Ltd. V. Asst. Commissioner (order dated 10.06.2019 in W.P.No.3321 of 2019) in favour of the petitioner.

7. I am also of the view that the error in not stating ‘YES’ to availment of the Scheme, such error, admittedly being inadvertent and Mr. Rajinish Pathiyil fairly does not dispute this, should not stand in the way of the consideration of entitlement on merits. As far as entitlement itself is concerned, I have already observed that the benefit of the Scheme would be available to the petitioner conditional upon verification and acceptance of such claim by the DGFT.

8. In the light of the discussion as above, the impugned order rejecting the request for amendment is quashed and a mandamus issued to the second respondent to amend the shipping as sought for, by the petitioner.

9. The Writ Petition is allowed. No costs.

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