TMI Blog2021 (3) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... apparent from Para 3.04 of the Policy that once the notified goods are exported to a notified market, the exporter becomes entitled to the MEIS benefits - Thus, entitlement, restriction thereof and conditions, if any, have to be found within the letters of the ChapterIII of the FTP 2015-20. Thus, the writ-applicant becomes entitled to the MEIS benefits once it exports the notified goods to the notified market. This benefit cannot be defeated due to procedural infirmity of missing to mark/tick Y in the rewards column. The writ-applicant submits that as per its understanding, the EDI system, which is an electronic system developed and managed by the respondent no.3 with an objective to digitalize transmission of shipping bills between Respondents, suffers from lacunae that it does not permit amendment, which is specifically permitted in terms of Section 149 of the Customs Act, 1961, to be carried electronically through EDI system - It is a settled law that the benefit which otherwise a person is entitled to once the substantive conditions are satisfied cannot be denied due to a technical error or lacunae in the electronic system. A reference is made to the decision in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The writ-applicant was contracted for the supply of 450 coaches to Australia under a project called Queensland New Generation Rolling Stock (QNGR) . Pursuant to this contract, the writ-applicant has been manufacturing and exporting the metro coaches to Australia. The writ-applicant appointed Geodis, a company engaged in the business of providing transport and logistic service, for providing services in relation to customs clearance, customs duty payment, statutory documents management vide Contract dated 30.11.2015. 2.2 The Metro coaches are notified goods and Australia is a notified market under the Appendix 3B of the Foreign Trade Policy 20152020. The entitlement of writ-applicant for MEIS benefit is thus not in dispute. 2.3 The writ-applicant had instructed the Geodis to file shipping bills with declaration of intent to avail the MEIS benefits after marking 'Yes' in the reward column of such shipping bills on EDI System so that it can avail the MEIS benefits. Accordingly, from 13.10.2016 onwards, the Geodis regularly filed shipping bills after marking 'Yes' in the reward column, based on which the writ-applicant availed the MEIS benefits. 2.4 Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned counsel appearing with Mr. Rohan Lavkumar, the learned counsel for the writ-applicant submitted that the benefits under the MEIS cannot be denied to the writ-applicant solely on the ground of a seeming technical error especially when the eligibility of the writ-applicant is not disputed, and the office of the Commissioner has already allowed amendment to the Relevant Shipping Bills. 5. According to Mr. Shekhar, the Shipping Bills along with various other documents clearly establish that the writ-applicant intended to claim the MEIS benefits in relation to the Relevant Shipping Bills. Reference may be made to documents such as invoice and checklist pertaining to the Relevant Shipping Bills which clearly mentioned that the writ-applicant intends to avail the MEIS benefits. Further, the writ-applicant has been exporting the metro coaches and availing the benefits under the MEIS in relation to such exports since 2014. 6. Mr. Shekhar would submit that it is only during the Relevant Period that the shipping bills were filed without marking Yes in reward column. Therefore, the writ-applicant humbly submits that its intention to claim the MEIS benefits cannot be dispu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Handbook of Procedure to the FTP 2015-20 marking/ticking of Y (for Yes) in Reward column of shipping bills against each item, which is mandatory, would be sufficient to declare to intent to claim rewards under the scheme. It is further the Respondent s case that no amendment can be carried out in the EDI system, which is electronic. 13. In the above circumstance, the writ-applicant submits that the Customs Act, 1962 as well as the Foreign Trade Policy 2015-2020 are substantive provisions. The Act, as well as the Policy confer substantive benefit on the writ-applicant. The Handbook of Procedure is merely a procedural document that enables the implementation of the Policy. It is a settled position that Handbook of Procedures is an administrative guideline, as would appear from a combined reading of para 2.4 of the FTP and Section 6 of the Foreign Trade (Regulation and Development) Act, 1992. It is therefore submitted that the handbook of Procedure cannot take away any right conferred either by the Act, or the FTP. 14. It is submitted that the same has already been decided by this Hon ble Court in Asahi Songwon Colors Ltd. v. Union of India, Order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be. 17. Thus, as stated hereinabove, the respondent no.4, after due verification of the documentary evidence existing at the time of the export duly amended the shipping bills manually from MEIS SCHEME No to MEIS SCHEME YES by way of Amendment Certificate dated 09.10.2018. Hence, the writ-applicant now having satisfied the MEIS conditions i.e. exported Notified Goods (Metro Coaches) to Notified Territory (Australia) cannot be deprived of the necessary MEIS benefits. 18. The entitlement to MEIS benefits is governed by the ChapterIII of the Foreign Trade Policy 201520 (FTP 201520) and accordingly, the scheme for the grant of the benefit will be governed thereunder. In other words, the substantive rights and obligations are created by the MEIS Scheme under ChapterIII of the FTP. It also becomes apparent from Para 3.04 of the Policy that once the notified goods are exported to a notified market, the exporter becomes entitled to the MEIS benefits. Thus, entitlement, restriction thereof and conditions, if any, have to be found within the lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants as well as the Director General of Foreign Trade to consider the claim of the writ petitioners for export benefit, afresh, in the light of the observations contained in the judgment and to the grant export benefits, if on an overall consideration of the details furnished by the writ petitioners the intention to claim the benefit of the MEIS was seen manifested at the time of export. The claim was directed to be considered afresh within a period of one month from the date of receipt of a copy of the judgment, after hearing the writ petitioners. In the meanwhile, the Customs Authorities were directed to issue necessary 'No Objection Certificate' in favour of the writ petitioners for processing the claim afresh. 3. Learned counsel for the appellants contended that, since the writ petitioners have not checked the 'Yes' Box in the relevant column, indicating their intention with respect to claiming of the benefit under MEIS, necessary verification of the export consignment was not done at the relevant time; and that verification of the consignment is not possible as of now. We are not persuaded to accept the said contention. Even if there exists no clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by various High Courts have not been appealed before any higher forum by any of the respondent till date. 23. The writ-applicant submits that as per its understanding, the EDI system, which is an electronic system developed and managed by the respondent no.3 with an objective to digitalize transmission of shipping bills between Respondents, suffers from lacunae that it does not permit amendment, which is specifically permitted in terms of Section 149 of the Customs Act, 1961, to be carried electronically through EDI system. It is a settled law that the benefit which otherwise a person is entitled to once the substantive conditions are satisfied cannot be denied due to a technical error or lacunae in the electronic system. 24. In this regard, a reference is made to the decision in the case of Darsh Pharma Chem Pvt Ltd. v. Superintendent, Central GST, Order dated 11 March 2020 in SCA 18051 of 2019; 2020 (3) TMI 696 wherein this Court, having regard to the fact that the TRAN-1 could not be filed on account of technical glitches in the electronic system, directed the respondents therein to permit the writ-applicant therein to file form in TRAN-1. We quote the relevant o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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