9911796707
TMI Blog2023 (9) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... A") has been preferred by the Appellant Authority/Director General of Foreign Trade (the "DGFT") against judgement dated 22.02.2023 passed by the learned Single Judge (the "Impugned Judgement") in W.P.(C) No. 2575/2022 titled Horizon Aerospace (India) Pvt. Ltd. vs. Union of India & Ors. (the "Writ Petition") whereby the Writ Petition filed by the Respondent Company was allowed. 2. The facts of the case reveal that the Respondent Company is engaged in the global supply of aircraft allied goods and products. On 07.06.2017, the Respondent Company received a purchase order from Dedienne Aerospace, France ("DA") for the supply of certain goods. Thereafter, in lieu of their supply of goods to DA, the Respondent Company received a total considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company is referred to as "MEIS Scrips"). The Respondent Company through its application dated 10.05.2021, sought MEIS Scrips amounting to INR 42, 18,906/- against the Bill of Export. 6. The Respondent Company was granted MEIS Scrips amounting to INR 42, 18,906/- by the Assistant Director General of Foreign Trade (the "Asst. DGFT") vide letter dated 11.06.2021. However, the same was proposed to be cancelled vide show cause notice dated 14.07.2021 ("Show Cause Notice") issued by the Asst. DGFT on grounds that the Respondent Company had misrepresented its supply destination as France in its application. The Show Cause Notice stated that the supply of goods by Respondent Company was ineligible for grant of MEIS Scrips as, according to the Bil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .07.2021 wherein the following additional documents were produced by the Respondent Company: (i) No Objection Certificate ("NOC") issued by Siddhartha Logistics which records unconditional consent given to the Respondent Company to claim benefits against the Bill of Export, (ii) Shipping Bill dated 30.07.2018, raised by Siddhartha Logistics which reflects Siddhartha Logistics as the Exporter; DA as the Consignee and Respondent Company as the Client (the "Shipping Bill") and lastly, e-Bank Realization Certificates ("e-BRCs") of the Respondent Company which reflects the details of the Bill of Export and records the currency of realization as EUR. 9. After hearing the Respondent Company, the Asst. DGFT passed the Order-in-Original dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual assessment of the documents on record therein, held that the Petitioner therein was not entitled to MEIS Scrips as they failed to satisfy the burden of proving their export transaction. 11. In the Impugned Judgement, the Learned Single Judge held that the decisions in Jindal Drugs (supra) and Ashwini Dighe (supra) were squarely applicable to the facts of the present case. On an assessment of the documents and payments on record, the Learned Single Judge concluded that mere misdescription in the Bill of Export would not disentitle the Respondent Company from MEIS Scrips as it does not change the actual factum of export by the respondent No. 1 and the consideration received by them from a foreign company. Therefore, the Impugned Actions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther clarified by the DGFT that the benefit of MEIS Scrips also cannot be granted to Siddhartha Logistics against the consequent export undertaken by them as the supply therein constitutes export made by an FTWZ unit (Siddhartha Logistics) and is therefore ineligible under Clause 3.06(vii) of the FTP. 14. In the considered opinion of this Court, the contention advanced by the DGFT is contrary to the factual position evidenced by the documents and payments on record. The Respondent Company has produced its Export Invoice, Bill of Export, and e-Bank Realisation Certificates which clearly establish the relationship of buyer and seller between the Respondent Company and DA. Further, it has supplemented its case by producing documents of Siddh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.03 of the FTP, is reproduced as under: "3.03 Objective Objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/ products." 17. A reading of the aforesaid clauses makes it clear that the MEIS and the benefits offered by the Government thereunder, including the MEIS Scrips have been introduced to make Indian exports more competitive. In light of the above, the interpretation preferred by the DGFT appears to defeat the purpose of the MEIS Scrips and consequently, the FTP, and therefore, cannot be accepted by this Court. 18. The Learned Single Judge, by placing reliance on Jindal Drugs (supra) and Ashish Dighe (supra) has correctly held that the actual factum of the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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