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2023 (9) TMI 315 - HC - Customs


Issues involved:
The judgment involves the issue of eligibility for MEIS Scrips under the Foreign Trade Policy 2015-2020 based on the interpretation of relevant clauses and the factual assessment of the export transaction.

Summary:
1. The Appellant, DGFT, challenged the Impugned Judgment in a Letters Patent Appeal (LPA) against the decision favoring the Respondent Company in a Writ Petition regarding the eligibility for MEIS Scrips.
2. The Respondent Company received foreign remittances for supplying goods to Dedienne Aerospace, France, through Siddhartha Logistics in a Free Trade Warehousing Zone (FTWZ).
3. The Respondent Company applied for MEIS Scrips against the Bill of Export, which was later proposed to be canceled by the Asst. DGFT due to misrepresentation of the supply destination.
4. The Respondent Company cited a Madras High Court judgment to support their case that the FTWZ was a facilitator of export, not the actual consignee.
5. The Asst. DGFT canceled the MEIS Scrips, imposed a penalty, and placed the Respondent Company on the Denied Entry List, leading to the Writ Petition.
6. The Learned Single Judge set aside the Impugned Actions, directing revalidation of the MEIS Scrips, based on the factual assessment that the principal export transaction was between the Respondent Company and Dedienne Aerospace.
7. The DGFT contended that the supply from the Respondent Company to Siddhartha Logistics constituted an ineligible category under the FTP.
8. The Court found that the documents established the relationship between the Respondent Company and Dedienne Aerospace, with Siddhartha Logistics acting as an intermediary for storage purposes.
9. The Court highlighted the policy objectives of MEIS Scrips to promote exports and concluded that the DGFT's interpretation would defeat the purpose of the scheme.
10. The Court upheld the Impugned Judgment, emphasizing that the actual exporter should be considered for MEIS Scrips, not secondary facilitative transactions.
11. The Court criticized the lack of application of mind by the DGFT authorities and upheld the direction to revalidate the MEIS Scrips for the Respondent Company.

 

 

 

 

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