Whether benefits under the MEIS scheme can be denied on a mere technical lapse on part of the exporter?

PJ/Case Law/2019-2020/3615

M/s Anu Cashews & others v The Commissioner of Customs & othersTS-1149-HC-2019(KER)-FTP
Brief Facts: - The Petitioner is an exporter, who is seeking to avail the benefit of MEIS scheme as envisaged under the Foreign Trade Policy, 2015-20 (FTP). The Petitioner while claiming the benefit of MEIS scheme indicated its intention to claim the benefit of the scheme in the specific box in the software through which details are uploaded on the web portal. However, in a further column which required them to tick the appropriate box to claim reward in respect of the export consignment, the Petitioner missed checking the box by stating ‘Yes’. Accordingly, the system recorded the default setting, which indicated ‘No’. The Respondents denied the benefit, since intention to avail the benefit was not expressly indicated by the Petitioner and consequently, necessary verification of the consignment was not conducted prior to its export.
Issue: - Whether benefits under the MEIS scheme can be denied on a mere technical lapse on part of the exporter?
Reasoning of the Judgement: -The Hon’ble Kerala High Court while going through the detailed examination of the facts and the screen shots of the web portal, the Hon’ble High Court observed that there are separate columns wherein the description of the goods, and the intention to claim the export benefit should be entered. Further, another column requires an exporter to indicate the intention to avail benefit against which the default setting reads as ‘No’. Thus, in order to claim benefits, exporter needs to uncheck the box having option ‘No’ and check the box reading ‘Yes’. The Petitioner had indicated his intention to avail the benefit of the scheme which was evident from the other details entered on the web portal while Export benefits cannot be denied in a mechanical manner merely because there was a technical lapse on the part of the exporter.
Held: -The Hon’ble High Court has directed the officials to consider the claim afresh and grant the benefit ; if an overall consideration of the details furnished by the petitioner and the intention to claim the benefit of the MEIS scheme was seen as manifested at the time of export.
Comment: - The said judgment should also be equally applicable in the GST regime also where only on account of technical glitches GST TRAN 1 ITC was disallowed by the officials. It is a well settled law that any benefits accruing should not be denied merely on technical or procedural lapse on part of an applicant. This judgment emphasizes on the intention to avail benefit of a scheme clubbed with other details entered in the web portal and, ignores a mere technical lapse on the part of the Petitioner.
Prepared By- CA Kartik Singhvi

Comments

PJ/Case Law/2019-2020/3615

Post a Comment

Query