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TMI Blog2025 (1) TMI 1386X X X X Extracts X X X X X X X X Extracts X X X X ..... riod June 2017 to August 2022 at the rate of 5% of the FOB value of the goods exported by the Petitioner. Out of these 111 applications, in respect of 38 applications reward/benefit [at the rate of 2% of the FOB value] was granted pursuant to an order passed by this Court on 29th May 2019 in Writ Petition No. 1392 of 2018. However, in respect of the balance 73 applications filed post December 2018, no reward/benefit was granted. It is the case of the Petitioner and which is not factually disputed, that in the impugned order, Respondent No. 3 rejected the claim of the Petitioner for (i) the differential amount of 3% benefit under the MEIS in respect of 38 applications [amounting to Rs. 4,92,77,066/-] and (ii) the entire claim under the MEIS in respect of 72 applications [amounting to Rs. 14,57,85,436/-]. One application allotted File No. 27/21/090/50330/AM21 dated 13th June 2020, and amounting to Rs. 31,44,000/- has inadvertently been missed out in the impugned order. Hence, the total amount claimed as a benefit under the MEIS is Rs. 19,82,06,502/-. 4. According to the Petitioner, it is a leading manufacturer of synthetic fibre ropes since about 25 years. The Petitioner has 2 units ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 2009-10 till date and (ii) The Export Promotion Council for EOUs and SEZs ("EPCES") for the Financial Year 2016-17 and then again from 2022-23 onwards till date. 9. It is the case of the Petitioner that it has made multiple applications in the prescribed Form for issuance of scrips under the MEIS at the rate of 5% of the FOB value of the goods exported and the same were regularly issued to them during the period April 2015 to June 2017. Though the issue of classification of the Petitioners goods [involved in the present proceedings], has been contested on different levels before, (i) the Customs Authorities; (ii) the Customs Excise and Service Tax Appellate Tribunal (CESTAT); (iii) this Court; and (iv) the Hon'ble Supreme Court, the dispute in the present Petition is restricted to the non-processing of pending applications and non-granting of the reward/scrips under the MEIS as set out above. 10. Though the impugned order makes certain observations on the merits of the case (in paragraph 17 to 21 thereof) from paragraph 26 and 27 of the said order it is clear that the rejection of the MEIS benefits/scrips is done solely on the purported ground that the Petitioner di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish or upload on DGFT's website in the Importer Exporter Profile, the RCMC granted by competent authority in accordance with procedure specified in HBP unless specifically exempted under FTP. Certificate of Registration as Exporter of Spices (CRES) issued by Spices Board shall be treated as Registration-Cum-Membership Certificate (RCMC) for the purposes under this Policy." 13. Paragraph 2.91 talks about Registering Authorities and stipulates that the Registering Authority is a body notified by the DGFT to register importers/exporters as its members and issue a RCMC. The list of notified Registering Authorities is at Appendix-2T. Paragraph 2.91 reads thus: "2.91 Registering Authorities (a) Registering Authority is a body notified by DGFT in this regard to register importers/exporters as its members by issuing RCMC. (b) The list of notified Registering Authorities is at Appendix-2T. (c) EPCs acting as the Registering Authorities for RCMC at present will continue to act as Registering Authorities and issue RCMC to their members till 31st March, 2016. EPCs wishing to continue as Registering Authority for their product group thereafter shall have to comply and fulfil the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under the Foreign Trade Policy 2015-20. The relevant portion of Appendix 2T reads thus:- "APPENDIX-2T List of Export Promotion Councils/Commodity Boards/Export Development Authorities S.No. Name of Export Promotion Councils/ Commodity Boards Registered Office/Head Office Details of products falling within their jurisdiction EXPORT PROMOTION COUNCILS 1. Apparel Export Promotion Council Registered Office A-223, Okhla Industrial Area Phase-I, Okhla New Delhi-110020 Tel:011-26372721 Fax: 011-26814251 E-mail:[email protected] Head Office Apparel House, Institutional Area Sector-44, Gurgaon Haryana-122003 Tel: 0124-2708000 Fax: 0124-2708004. E-mail:[email protected] Readymade garments. 2. Basic Chemicals, Pharmaceuticals & Cosmetics EPC (CHEMEXCIL) Jhansi Castle, 4th Floor 7 Cooperage Road Mumbai-400001. Tel:022-2021288/22021330/22825861. website: 222.chemexcil.gov.in Email:[email protected] [email protected] * Dyes, Dye-Intermediates, Coal Tar Chemicals and Alcohol * Basic inorganic and organic chemicals including Agro Chemicals, Oil Field Chemicals * Cosmetics and Toiletries, Essential Oils & Perfumery Compounds * Castor Oil & it's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . ..... 30. ..... 31. ..... 32. ..... 33. ..... 34. ..... 35. ..... 36. ..... 37. ..... (emphasis supplied) 16. It appears from the impugned order that the only ground on which the MEIS benefit/scrips were refused to the Petitioner by Respondent No. 3 was because according to Respondent No. 3 the Competent Authority to issue the RCMC for 100% EOUs and SEZs Units was EPCES. Since the Petitioner was not registered with EPCES from Financial Year 2017-2018 to 2021-2022 the benefits to the Petitioner were denied. The relevant portion of the impugned order in this regard reads thus:- "22. At the time of personal hearing, the unit was directed to submit the copy of RCMC as per the foreign trade policy to avail the benefits under Chapter 3 of FTP 2015-20, the unit vide letter dated 02.11.2023 has submitted A copy of RCMC No. RCMC/EPCES/00338/2022-2023 issued by Export Promotion Council for EOUs and SEZ Units for the F.Y. 2022-23 while the export period for which the issue of MEIS scrip is under examination is from June 2017 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2T (under the Foreign Trade Policy of 2015-20) there was no requirement that a 100% Export Oriented Unit had to be registered only with EPCES and not with FIEO. In fact, because there was this confusion, on 12th October 2022, the Government of India, Ministry of Commerce and Industry, Seepz Special Economic Zone Authority, SEEPZ-SEZ, Andheri (E), Mumbai, issued Circular No.78 of 2022 informing all EOUs that EPCES membership is now compulsory for all the SEZ Units/SEZ Developers. The aforesaid Circular can be found at page 351 of the paperbook which reads thus:- "No. SEEPZ-SEZ/IA-II/Govt. Ref./2013-14/Vol. IX/16901 Date:12.10.2022 CIRCULAR NO. 78/2022 To: All the EOUs/SEZ Units/SEZ Developers & Co-Developers This is to inform that EPCES membership is now compulsory for all the SEZ Units/SEZ Developers, i. Gazette Notification G.S.R.(771-E) dated 05.08.2016 which provides that "RCMC" means Membership Certificate issued by Export Promotion Council for EOUs and SEZs and that "The Unit or the Developer including Co-developer shall obtain a Registration-Cum-Membership Certificate (RCMC) for falling exemption, drawbacks and concessions" ii. Public Notice 27/2015-2020 dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction EXPORT PROMOTION COUNCILS 1. ..... 2. ..... 3. ..... 4. ..... 5. 6. 7. 8. 9. 10. Export Promotion Council for EOUs & SEZ Units A-101, 10th Floor Himalaya House, 23, K G Marg, New Delhi-110001 Tel:011-23329766-69 e-mail: [email protected] [email protected] (i) All products and services by EOU except spices. In case of spices, it would be mandatory for units to get themselves registered with Spices Board. (ii) All products and services by SEZs 11. .... 12. ..... .... ..... 39. ..... 19. It is therefore clear that under the subsequent Foreign Trade Policy i.e. the Foreign Trade Policy 2023, all Export Oriented Units have to be registered with EPCES to avail of the benefit/scrips under the MEIS. Under the FTP 2015-20 there was no such requirement. It is for this very reason that on 12th October 2022, the Government of India, Ministry of Commerce and Industry, Seepz Special Economic Zone Authority, SEEPZ-SEZ, Andh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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