Case Note & Summary
The petitioner, Larsen & Toubro Limited, filed a writ petition seeking directions to the respondents to accept amendments made in three shipping bills and grant MEIS scrips amounting to Rs.1,61,34,190. The petitioner had inadvertently declared 'N' instead of 'Y' in the reward column of the shipping bills filed between August 2017 and December 2018, indicating no intention to claim MEIS benefits. Upon realizing the error, the petitioner applied for manual correction, which was allowed by the Superintendent of Customs on 17 October 2019 via amendment certificates. However, the DGFT refused to accept the manual amendments, citing that the system could not process such corrections. Despite multiple follow-ups and a public notice issued in April 2023, the petitioner faced systemic hurdles. The court observed that the only objection was the difficulty in processing corrected shipping bills due to system limitations, not any default by the petitioner. Relying on the precedent in Technocraft Industries (India) Limited v. Union of India, the court held that the power under Section 149 of the Customs Act to amend shipping bills cannot be rendered ineffective by systemic issues. The court directed the respondents to accept the amended shipping bills and grant the MEIS scrips within four weeks, emphasizing that the departments must integrate their systems to avoid such hardships.
Headnote
A) Customs Law - Amendment of Shipping Bills - Section 149 Customs Act, 1962 - MEIS Scheme - The court considered whether an exporter who inadvertently declared 'N' instead of 'Y' in the reward column of shipping bills is entitled to MEIS benefits after the error was corrected manually and electronically. The court held that the power under Section 149 to amend shipping bills cannot be rendered nugatory by systemic limitations, and the exporter cannot be made to suffer due to lack of integration between Customs and DGFT systems. (Paras 15-24) B) Administrative Law - Systemic Disconnect - MEIS Scheme - The court noted a clear lacuna in the procedure for dealing with shipping bills amended under Section 149, as DGFT refused to accept manual amendments due to system constraints. The court directed the respondents to accept the amended shipping bills and process the MEIS claims, emphasizing that the departments cannot work in silos and must update their systems to avoid hardship to exporters. (Paras 16-24)
Issue of Consideration
Whether the petitioner is entitled to MEIS benefits despite an inadvertent error in declaring 'N' instead of 'Y' in the reward column of shipping bills, and whether the respondents can deny benefits due to systemic limitations in processing amended shipping bills.
Final Decision
The court allowed the writ petition and directed respondents to accept the amended shipping bills and grant MEIS scrips of Rs.1,61,34,190 within four weeks.
Law Points
- Section 149 Customs Act
- 1962
- MEIS Scheme
- Doctrine of purposive interpretation
- Integration of Customs and DGFT systems
- Inadvertent error correction
