High Court Orders Compliance with Ruling: No Cap on IEIS Duty Credit Scrips; Fair Application Review Required.

The High Court directed respondents to comply with the Bombay HC's ruling in JSW Steel Ltd. Vs. Union of India, which quashed a 2014 clarification and held that the 2013 Notification did not impose a cap on IEIS duty credit scrips. The court ordered consideration of applications on merits without arbitrary value restrictions, disposing of the petition accordingly.

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Issues:
1. Petition for issuance of writ of mandamus or any other writ directing the respondents to grant or issue IEIS duty credit scrips.
2. Quashment of clarification Circular No. 01/61/180/188/AM13/PC3 dated 23.09.2014.
3. Interpretation of the 2013 Notification regarding the cap or restriction on the value of the IEIS scrip.

Analysis:
1. The petitioner sought the issuance of writ directing the respondents to grant IEIS duty credit scrips based on an application submitted on a specific date. The petitioner also requested the quashing of a clarification circular from 2014. The Bombay High Court had previously quashed a similar clarification in the case of JSW Steel Limited Vs. Union of India. The High Court held that the 2013 Notification did not impose a cap or restriction on the value of the IEIS scrip, directing the authorities to consider the applications on merits without regard to the impugned clarification.

2. The counsel for respondent No.3 referred to a judgment by the Delhi High Court in a related case, M/s Welldone Exim Pvt. Ltd. Vs. Director General of Foreign Trade, where the court followed the Bombay High Court's decision in JSW Steel Ltd. The Delhi High Court allowed the writ petition, directing the regional authority to examine the petitioner's case for export incentives without rejecting it solely based on the claimed amount exceeding a certain limit during a specific financial year. The High Court in the present case directed the respondents to comply with the Bombay High Court's directions within eight weeks.

3. The High Court relied on the judgment in JSW Steel Limited Vs. Union of India to decide the issue of interpretation of the 2013 Notification regarding the cap or restriction on the value of the IEIS scrip. The court directed the respondents to follow the directions issued by the Bombay High Court and comply with the order within a specified time frame. As a result, the petition was disposed of based on the precedents set by the Bombay and Delhi High Courts in similar cases, ensuring that the authorities consider applications for export incentives without imposing arbitrary limits based on the value claimed.

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