2022 (2) TMI 23 - HC - Customs

Grant of export incentives under Merchandise Exports from India Scheme (MEIS) - seeking reopening of online portal to allow the petitioner to rectify the inadvertent error or to accept and process physical application to grant export incentives under MEIS to the petitioner - HELD THAT - It is to be noticed that in the shipping bill, there is an intention of the petitioner to avail the benefit under the MEIS scheme as is revealed from the declaration, which is part of shipping bill at page No.108 and in the reward column, there is an entry which shows 'No'. Accordingly, the assertion of the petitioner that they inadvertently ticked NO instead of YES in the reward column is an assertion that is to be accepted. The Committee also accepts the factual assertion though concludes that in light of the automated system and noticing the mistake of the petitioner question of allowing rectification of the shipping bill did not arise. It must be noted that to err is human and wherever such bonafide mistakes have happened procedures so designed ought to provide for a way to rectify such bonafide mistakes. An error arising out of lapse and where parties seek to have the same rectified, the system must accommodate necessary procedure to rectify it. While noticing that mistake that has happened is a technical mistake and is bonafide, on such technicalities, to deny substantive relief to the petitioner would amount to denial of justice - the respondent No.1 to allow the benefit under MEIS to the petitioner in respect of the 17 shipping bills, which is the subject matter of the present petition - petition disposed off.

Summary

Issues:
1. Quashing of orders dated 28.05.2019 and 07.01.2020.
2. Consideration of petitioner's case for export incentives under MEIS.
3. Rectification of inadvertent error in shipping bills.
4. Denial of benefit under MEIS due to procedural lapse.
5. Technical difficulties in the automated system for rectification.
6. Comparison with similar judgments by other High Courts.

Analysis:
1. The petitioner sought to quash the orders dated 28.05.2019 and 07.01.2020, requesting consideration for export incentives under MEIS or rectification of inadvertent errors in the shipping bills. The petitioner highlighted a procedural lapse where 'No' was selected instead of 'Yes' in the rewards column of certain shipping bills by mistake.

2. The petitioner argued that despite the error, the intention to claim benefits under the MEIS scheme was evident from the shipping bills. The Policy Relaxation Committee (PRC) and the Appellate Committee rejected the plea based on technical grounds, stating that the automated system did not allow changes from 'No' to 'Yes'.

3. The petitioner referenced judgments from other High Courts where relief was granted in similar cases of inadvertent errors in shipping bills. The Orissa High Court's decision emphasized rectifying procedural defects to ensure exporters are not deprived of entitled benefits under the MEIS scheme.

4. The Court acknowledged the petitioner's bonafide error and the need for procedural accommodations to rectify such mistakes. Denying relief based on technicalities would amount to a denial of justice. Therefore, the Court set aside the PRC's decision and directed the respondent to grant MEIS benefits to the petitioner for the 17 shipping bills in question.

5. The judgment highlighted the importance of rectifying genuine mistakes and ensuring that procedural systems accommodate such errors to prevent unjust denial of entitled benefits. The Court's decision aimed to uphold fairness and justice in the administration of export incentive schemes.

6. In conclusion, the Court disposed of the petition by overturning the previous decisions and ordering the extension of MEIS benefits to the petitioner for the specified shipping bills, emphasizing the need for rectifying bonafide errors to prevent unjust denial of legitimate benefits.