Legal principle

An exporter who inadvertently leaves the default 'N' instead of 'Y' in the MEIS declaration on a shipping bill cannot be mechanically denied the benefit where the intention to claim is otherwise manifested, and the Court may direct conversion of the option from 'N' to 'Y' with the claim processed in accordance with law.

Court decision

The Division Bench allowed the writ petitions in favour of the petitioner-exporters, directing respondent No.4 (DGFT) to permit the petitioners to resubmit their online MEIS applications by converting the option from 'N' to 'Y', with the claims thereafter to be processed by the Competent Authority, i.e., the Joint Director of Foreign Trade/Regional Authority at Jaipur, in accordance with law; no order as to costs was made.

Facts

The petitioners are Rajasthan-based (Bhilwara) manufacturers and exporters of textile goods holding valid IECs, who exported goods during FY 2015-16 and 2016-17 intending to claim MEIS duty credit scrips under the Foreign Trade Policy 2015-20. In respect of three shipping bills, an inadvertent clerical error left the default 'N' in the declaration of intent instead of 'Y', so the shipping bills were not transmitted from Customs to the DGFT and MEIS claims could not be filed on the DGFT portal. Representations through the petitioners' Customs House Agent and a representation dated 24.01.2022 seeking rectification and transmission went unacted upon. The respondents contested the petitions, taking the preliminary objection that the Rajasthan High Court lacked territorial jurisdiction and the matters should have been filed before the Gujarat High Court.

Key provisions

• Section 149, Customs Act, 1962 — Amendment of documents
• Section 145, Customs Act, 1962 — Owner etc to perform operations incidental to compliance with customs law