2024 (8) TMI 914 - HC - Customs

100% EOU - Benefit under Merchandise Export from India Scheme (MEIS) - failure to fill the declaration of intent column - inadvertent and bona fide error - HELD THAT - Since the Petitioner has satisfied all the requirements to claim benefits under MEIS which were due to them, the same ought not to be denied on hyper-technical grounds, purely on account of an inadvertent and bona fide error of not declaring the intent to claim MEIS benefits on shipping bills. This, in the opinion of the Court, was a procedural lapse which has thereafter been duly rectified under Section 149 of the Customs Act, with Respondent No. 3 having issued amendments certificates in respect of the deficient shipping bills. Further, the Court also notes that the Petitioner s request was rejected on account of a system error which was beyond the Petitioner s control. The Petitioner could not reapply for MEIS benefit as the online request on the DGFT portal for re-validation of shipping bills has not been resolved. Although the system has generated a report indicating that the issue has been resolved, as depicted in the screenshots placed on record by the Petitioner, however, in reality, that is not the case as a result the shipping bills in question are still not reflected on the EDI system. In the opinion of the Court, the PRC ought to have considered all the aforenoted facts, and particularly that this was a case of pure inadvertent error on the part of the Petitioner which was subsequently rectified. Therefore, since the Petitioner has already cured the deficiencies and secured amendment certificates, their request should not be rejected on account of amended shipping bills not being reflected on the automates system. Thus, since the Petitioner has fulfilled the pre-requisites to claim the MEIS benefits, in the opinion of the Court, the present petition deserves to be allowed. Respondents are directed to consider the Petitioner s MEIS claims electronically/ manually and process the application in accordance with public notices No. 40/ 2015-2020 dated 9th October, 2015 and 47/ 2015-20 dated 8th December, 2015, in respect of all 17 shipping bills - Petition disposed off.

Summary

Issues:
1. Eligibility for MEIS benefits due to incorrect declaration of intent on shipping bills.
2. Rejection of MEIS claims by authorities despite rectification of errors.
3. System error preventing re-application for MEIS benefits.
4. Review of PRC decisions on MEIS claims.

Analysis:
1. The petitioner, an Export Oriented Unit, mistakenly marked "N" instead of "Y" for MEIS benefits on shipping bills. Despite rectifying the error under Section 149 of the Customs Act, authorities rejected MEIS claims for all 17 shipping bills due to non-compliance with deficiency notices within timelines.

2. The court found the rejection based on hyper-technical grounds unjust, as the petitioner fulfilled MEIS requirements and rectified errors. The issuance of amendment certificates for deficient bills should have sufficed, and the rejection due to a system error beyond the petitioner's control was deemed unreasonable.

3. The petitioner's inability to reapply for MEIS benefits due to a system error was highlighted. Even though the online request for re-validation was unresolved, the court noted that the petitioner had received amendment certificates for 7 shipping bills, making them eligible for MEIS benefits as per relevant policy guidelines.

4. The court criticized the Policy Relaxation Committee's refusal to re-validate shipping bills, emphasizing the inadvertent nature of the error and subsequent rectification. The court set aside the impugned orders, directing authorities to consider the petitioner's MEIS claims for all 17 shipping bills as per established public notices.

In conclusion, the court allowed the petition, stressing the petitioner's fulfillment of MEIS requirements and rectification efforts. The authorities were instructed to process the MEIS application for all 17 shipping bills, overturning the previous rejections based on technicalities and system errors.