Inadvertent Mistake Rectified by Amending of Shipping Bill for MEIS,DGFT can’t reject Application as not being filed Online: Bombay HC  [Read Order]

The Bombay High Court (HC) has held that the Director General of Foreign Trade ( DGFT ) can’t reject the application as not being filed online when an inadvertent mistake was rectified by amending of shipping bill for Merchandise Exports from India Scheme ( MEIS ).

Technocraft Industries (India) Limited, the Petitioner is a company incorporated under the Companies Act, of 1956.  The Policy Relaxation Committee under Respondent No.2 discharges duties under the Foreign Trade (Development and Regulation) Act, 1992.   Respondent No.4 is the Commissioner of Customs, Jawaharlal Nehru Customs House, Nhava Sheva.

The Petitioner has two manufacturing units at MIDC, Murbad, where the Petitioner manufactures Scaffolding steel products and Drum Closures. The Petitioner exported goods manufactured by it and is eligible for the benefit of the MEISas per the Foreign Trade Policy 2015-2020.  

While filling out the shipping bills online, the Petitioner erroneously clicked on the option "No" for the benefits of MEIS instead of "YES ".  The shipping bills and the associated documents indicated that it was by mistake and that the Petitioner always wanted to take benefit of MEIS.   To correct this mistake, the Petitioner approached the Customs Authority as per the provision of section 149 of the Customs Act, 1962, to seek an amendment to 12 shipping bills.  

Section 149 provides a provision to the proper officer by his discretion can allow the amendment to the shipping bills vide two certificates of amendment dated 7 October 2019 and 14 December 2020.  For claiming rewards under MEIS on exports, an application has to be filed online on the website of the DGFT. The relevant shipping bills and e-BRC are to be linked with the online application. Manual feeding is not allowed in respect of shipping bills.  

DGFT stated in the note that the eligibility of the exporter to claim benefit under MEIS depends on the fulfilment of all notified procedural provisions as outlined in the Foreign Trade Policy (FTP) 2015-20 and the Hand Book of Procedures (HBP) 2015-20.   The entitlement under MEIS is allowed only when the exporter follows the procedure. 

DGFT has taken a stand that it has to go by the shipping bills transmitted online as per the procedure referred to aforesaid, and it has no methodology to deal with the amended shipping bills.   The Customs Department stated that amended shipping bills are submitted the Customs Department has no role to perform.

A two-member bench comprising of Justice Nitin Jamdar and Justice Abhay Ahuja observed that the Policy Relaxation Committee has correctly pointed out that in the computerized environment when the governance of MEIS is online, it is difficult to proceed unless amended shipping bills are transmitted online.

The Court directed the concerned departments of the Respondents to take necessary steps within four weeks from the date order is uploaded.

To Read the full text of the Order CLICK HERE

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