2021 (12) TMI 1453 - HC - Customs

Seeking amendment of shipping bills and to issue MEIS benefit on the basis of the amended shipping bills - it is the say of the petitioner that the Company was eligible for reward due to capturing of N through an oversight in all the invoices except one, therefore, the Company was unable to claim MEIS benefits - HELD THAT - Noticing the fact that in the instant case, the petitioner has already in the several shipping bills that he has presented explicitly expressed its intent of availing the benefits of the reward made under MEIS, the subsequent capturing of the same as NO instead of Y for the reward scheme once the shipping bills were electronically filed for export made by the petitioner Company during the period from 10.04.2019 to 27.07.2014 would have no bearing. The decision of this Court in case of M/S. RAJ AND COMPANY VERSUS UNION OF INDIA 2021 (2) TMI 1101 - GUJARAT HIGH COURT would squarely cover the issue so far ticking of these EDI shipping bills are concerned. Moreover, the Court cannot be oblivious of the fact that it was a time when software for online filing was merely introduced after converting port into EDI port and therefore, not only there is possibility of the technical glitch, but, the person in whose benefits this had been done also, may not be aware of the procedure and the manner of operation, which may have resulted into depending on some other agencies for committing mistake. And that, by no means can take away the right of the parties, more particularly, when in the manual shipping bills, they had categorically requested for grant of benefits of scheme and that leaves no room of doubt about the intent. Authority once can make out from manner shipping bills, they must not carry the mindset even with reiterative requests from the exporters to avail benefit of Scheme to deny such benefits on sheer technicality. The respondent Authority concerned while passing the order has been oblivious of this initial hiccups and also has overlooked the clear intent expressed in Manual shipping bills insisted by the petitioner. Every time the petitioner indicated from transaction to avail benefits, the same shall need to be looked at and to be dealt with a pragmatic approach and here is a case where otherwise the incident of export is not being questioned or doubted. There will be need for indulgence of this Court by quashing and setting aside the order passed on16.07.2021. The respondent No.2 shall allow the amendment of those bills which had been uploaded online and if not feasible due to technical reasons, on accepting the original shipping bill, let the same be compared and avail the benefits on the strength thereof - the respondent are directed to issue MEIS benefit on the amended bill if otherwise is found in accordance with law.

Summary

Issues Involved:
1. Amendment of shipping bills to claim MEIS benefits.
2. Technical glitches in capturing MEIS intent in shipping bills.
3. Procedural requirements under the Foreign Trade Policy (FTP) 2015-20.
4. Authority of DGFT to grant exemptions or relaxations in public interest.
5. Judicial precedents on similar issues.

Issue-wise Detailed Analysis:

1. Amendment of Shipping Bills to Claim MEIS Benefits:
The petitioner, a company engaged in manufacturing and exporting radiators, sought to amend shipping bills to claim benefits under the Merchandise Exports from India Scheme (MEIS). The company had mistakenly marked "N" instead of "Y" in the reward scheme column for several invoices, preventing them from claiming MEIS benefits. The court allowed the draft amendment to be carried out forthwith.

2. Technical Glitches in Capturing MEIS Intent in Shipping Bills:
The petitioner argued that a technical glitch occurred when the SEZ port was converted to an EDI port, causing the shipping bills to capture "N" instead of "Y" for the MEIS reward scheme. The petitioner had addressed multiple communications to the respondent authorities to rectify this mistake but received no response. The court recognized the possibility of technical glitches and the nascent stage of electronic filing systems.

3. Procedural Requirements under the Foreign Trade Policy (FTP) 2015-20:
The respondent argued that the eligibility for MEIS benefits depended on fulfilling procedural requirements outlined in the FTP 2015-20 and the Handbook of Procedures (HBP). Specifically, marking "Y" in the reward column of EDI shipping bills was mandatory to declare intent to claim rewards. The court noted that the petitioner had followed the procedure in manual shipping bills and that the technical error should not deprive them of MEIS benefits.

4. Authority of DGFT to Grant Exemptions or Relaxations in Public Interest:
The respondent contended that policy relaxation was not a matter of right and that the Policy Relaxation Committee (PRC) considers each case on its merits. The court referred to Para 2.58 of the FTP, which allows DGFT to grant exemptions, relaxations, or relief in public interest. The court emphasized that genuine hardship and adverse impact on trade should be considered.

5. Judicial Precedents on Similar Issues:
The petitioner relied on the decision in Special Civil Application No. 17804 of 2019 (Raj and Company Vs. Union of India), where the court allowed amendments to shipping bills marked "N" instead of "Y" due to inadvertent mistakes. The court also referred to other cases, such as Saint Gobain India Pvt. Ltd. and Pasha International, where amendments were permitted despite procedural errors. The court concluded that a simple mistake should not deny accrued benefits, especially when electronic filing systems were newly introduced.

Conclusion:
The court quashed the order dated 16.07.2020 and directed the respondent to allow the amendment of shipping bills. If online amendment was not feasible, the original shipping bills should be compared, and MEIS benefits should be issued if found in accordance with the law. The scrutiny was to be completed within eight weeks from the receipt of the order. The court emphasized a pragmatic approach, recognizing the initial hiccups in electronic filing systems and the clear intent expressed in manual shipping bills.