2022 (8) TMI 1208 - HC - Customs

IGST Refund - Merchandise Exports From India Scheme (MEIS) benefits against some of the shipping bills, not received - HELD THAT - It was unanimously agreed to present before the Hon ble Delhi High Court that the best possible solution that can be readily implemented is that DGFT will issue a manual MEIS scrip in this case and the same would be honoured by the ICD-Tughlakabad Customs without insisting on electronic transmission of the same. This exercise will be completed no later than three weeks from the date of receipt of the copy of this order - Petition disposed off. List the matter for compliance on 06.10.2022.

Summary

Issues:
1. Delay in processing Merchandise Exports From India Scheme (MEIS) benefits.
2. Non-transfer of export data to the Directorate General of Foreign Trade (DGFT) portal.
3. Verification difficulties due to electronic system in place since 2015.
4. Resolution through manual issuance of MEIS scrip by DGFT.

Analysis:
1. The court noted the delay in processing MEIS benefits related to certain shipping bills despite receiving IGST refunds. The petitioner's counsel highlighted the issue persisting since 2018 with the DGFT, emphasizing the lack of progress despite previous orders.

2. The primary issue stemmed from the non-transfer of export data to the DGFT portal, causing a delay in verifying the transactions electronically. The court acknowledged that while IGST refunds were provided based on the same exports, the linkage of data among Customs, DGFT, and the bank had not been established.

3. The verification challenges were attributed to the electronic system in place since 2015, leading to difficulties in validating transactions for MEIS benefits. The court directed a meeting between relevant officials to find a solution, considering the potential role of the National Informatics System (NIC) in addressing the problem.

4. Subsequently, a meeting was held, resulting in an agreement to issue manual MEIS scrips by the DGFT for immediate implementation without electronic transmission. Both parties agreed to dispose of the matter based on this solution, ensuring the issuance of MEIS scrips within three weeks for further processing by ICD-Tughlakabad Customs.

5. The court ordered the DGFT to expedite the manual issuance of MEIS scrips, directing ICD-Tughlakabad Customs to honor these scrips without insisting on electronic transmission. The writ petition was disposed of accordingly, with compliance scheduled for a future date, emphasizing action based on the digitally signed order.