2022 (9) TMI 1588 - HC - Customs

Exemption of Social Welfare Surcharge - Notification No. 24/2015-CUS - Seeking refund of the Social Welfare Surcharge wrongly debited - Merchandise Export from India Scheme (MEIS) / Service Exports from India Scheme (SEIS) scrips - interest - HELD THAT - An identical issue was considered by this court where the court by order 2022 (8) TMI 1489 - BOMBAY HIGH COURT disposed the petition. Thus respondents are directed not to auto debit from petitioner s MEIS and SEIS scrips any amount towards Social Welfare Surcharge. Moreover any amount deducted shall be refunded to petitioner within 8 weeks of receiving an application from petitioner for refund. Mr. Sridharan states that necessary application for refund to justify the quantum of refund will also be filed. Refund shall be issued together with interest thereon in accordance with law. Petition disposed.

Summary

Issues involved:
The issues involved in the judgment include seeking a writ of mandamus for exemption of Social Welfare Surcharge and refund of wrongly debited amounts from Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) scrips.

Exemption of Social Welfare Surcharge:
The petitioner sought a writ of mandamus or any appropriate writ to direct the respondents to grant exemption of the Social Welfare Surcharge amount as per specific Exemption Notifications. An identical issue was previously considered by the court, where the grievance was resolved through a circular issued by the Department of Revenue. The court directed that the petitioner would be entitled to a refund of the notional social welfare surcharge in the duty credit scrips issued under MEIS for imported goods. The respondents were instructed not to auto debit any amount towards Social Welfare Surcharge from the petitioner's MEIS and SEIS scrips. Any deducted amount was to be refunded within 8 weeks upon application, along with applicable interest.

Refund of Wrongly Debited Amounts:
In addition to seeking exemption, the petitioner also requested a refund of the Social Welfare Surcharge wrongly debited from the MEIS and SEIS scrips held by them from July 2018 onwards. The court directed that any amount deducted should be refunded within 8 weeks upon application from the petitioner, along with interest. The petitioner was advised to file a necessary application for refund to determine the quantum of refund, which would be issued in accordance with the law.

This judgment provides relief to the petitioner by granting the exemption of Social Welfare Surcharge and ordering the refund of wrongly debited amounts, ensuring compliance with the applicable legal provisions and directives.