Export Incentives Can't Be Denied For Inadvertent Error: Karnataka HC Allows to Amend Shipping Bills [Read Order]

Louis Dreyfus Company (India) Pvt. Limited, the petitioner, had uploaded the shipping bills on 15.03.2021, 16.03.2021, 01.04.2021 and 09.04.2021. In the column indicating the claim for export benefit, inadvertently, the petitioner had not selected the option 'Yes' in the relevant field in the form. In fact, the petitioner had selected the option 'No' in the form and as such, export benefit in relation to the advantage was not provided to the petitioner.

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Subsequently, when the petitioner had approached the respondent for amendment of the said shipping bill and for grant of export benefit, the said application was not accepted on the ground that the shipping bills have been provided in the online manner and there is no scope for amendment of the online shipping bill and furthermore, there is no procedure envisaged for a manual amendment of shipping bill which is submitted in online.

On principle, counsel for respondents submitted that there can be denial of the export benefit as available to the petitioner in terms of shipping bills which have been uploaded online. However, his submission is that since there is no procedure which is envisaged for amendment through online or for manual amendment, the request of the petitioner could not be processed.

The observation made by the Division Bench of the Gujarat High Court was after considering all the aspects in relation thereto and a direction had been issued to the respondent authorities to process the claim of the petitioner therein by permitting the amendment of shipping bills on the custom automated system by making technical deviation in the system and thereafter, process the claim of the petitioner for benefit under the RoDTEP scheme. The said decision was rendered on 10.01.2024, it is rather surprising that the Department continues to even today contend that there is no online amendment which can be permissible.

There are situations where the assessee by inadvertence or even otherwise has uploaded certificate/forms or returns which contains some errors which would require correction. The said correction or amendment cannot be denied on the basis of the technological system which has been introduced by the Department to contend that the software does not allow for such amendment.

Prior to software being introduced, it was always available to allow amendment of the documents by the petitioner physically by submitting the application which would be considered by the concerned authorities. Merely because a software system is introduced, it would not mean that the software would override the principles of natural justice and rights of the parties. The software cannot govern the relationship between the assessee and the revenue.

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It would therefore be required for the revenue to implement such features as may be required in the software to enable the petitioner to amend any of the documents filed, subject of course to certain restrictions and supervision of the concerned authorities. Inasmuch as, these amendments can be allowed to be made by the assessee after prior approval of the concerned authorities by following due procedure in relation thereof.

The Court held that the petitioner would be entitled for export benefit even though no claim is made at the time of uploading the shipping bills.

Justice Suraj Govindaraj issued a mandamus directing the respondents to either permit the petitioner to amend the shipping bills in the online system or accept the amendment submitted by the petitioner manually and process the same within a period of four weeks from the date of submission of such amended documents by the petitioner.

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