Case Note & Summary
The petitioner, Technocraft Industries (India) Limited, a company incorporated under the Companies Act, 1956, manufactures scaffolding steel products and drum closures at its units in MIDC, Murbad. Between December 2017 and July 2019, it exported goods eligible for benefits under the Merchandise Exports from India Scheme (MEIS) as per paragraph 3.03 of the Foreign Trade Policy 2015-2020. While filing shipping bills online, the petitioner erroneously clicked 'No' for MEIS benefits instead of 'Yes', though all associated documents indicated the intention to claim MEIS. To correct this mistake, the petitioner approached the Customs Authority under Section 149 of the Customs Act, 1962, seeking amendment of 12 shipping bills. The Commissioner of Customs allowed the amendments via two certificates dated 7 October 2019 and 14 December 2020. The petitioner then applied to the Policy Relaxation Committee for a reward under MEIS. The Committee, in its meeting on 13 April 2022, rejected the application without considering the amendment certificates and the petitioner's explanation, merely noting that the shipping bills did not claim MEIS. The petitioner filed a writ petition challenging this decision. The court found that the Committee's decision suffered from non-application of mind as it ignored the valid amendments made by the Customs Authority. The court held that the amendment of shipping bills under Section 149 of the Customs Act is binding on the DGFT, and the Committee must consider the amended shipping bills. The court quashed the Committee's decision and directed the respondents to grant the MEIS reward of Rs. 15,24,334/- to the petitioner within four weeks.
Headnote
A) Foreign Trade Policy - MEIS Benefits - Clerical Error in Shipping Bill - The petitioner erroneously selected 'No' for MEIS benefit in online shipping bills but all supporting documents indicated intention to claim MEIS. The Customs Authority allowed amendment under Section 149 of the Customs Act, 1962. The Policy Relaxation Committee rejected the application without considering the amendment certificates and the petitioner's explanation. Held that the Committee's decision suffered from non-application of mind and was unsustainable (Paras 2-10). B) Customs Law - Section 149 Customs Act, 1962 - Amendment of Shipping Bills - The Commissioner of Customs has the power to amend shipping bills to correct clerical errors. Once amendment is allowed, it is binding on the DGFT for the purpose of granting MEIS benefits. The DGFT cannot ignore the amendment and must consider the shipping bills as amended (Paras 5-8). C) Administrative Law - Policy Relaxation Committee - Duty to Consider Relevant Material - The Committee must apply its mind to the facts of each case and consider all relevant documents, including amendment certificates issued by Customs. Failure to do so renders the decision arbitrary and liable to be set aside (Paras 9-10).
Issue of Consideration
Whether the Policy Relaxation Committee's rejection of the petitioner's application for MEIS reward was valid, and whether the amendment of shipping bills by the Customs Authority under Section 149 of the Customs Act, 1962 is binding on the DGFT for granting MEIS benefits.
Final Decision
The court allowed the writ petition, quashed the decision of the Policy Relaxation Committee dated 13 April 2022, and directed the respondents to grant the MEIS reward of Rs. 15,24,334/- to the petitioner within four weeks.
Law Points
- Policy Relaxation Committee must apply its mind to individual facts
- Amendment of shipping bills under Section 149 Customs Act is binding on DGFT for MEIS benefits
- MEIS eligibility cannot be denied solely due to clerical error in online form when substantive documents support claim
