Tribunal grants MEIS benefits in shipping bills appeal, highlights procedural error correction

The Tribunal allowed the appeals, setting aside the Commissioner's rejection of the amendment request to claim MEIS benefits in shipping bills due to a procedural error. The Tribunal found the appellants entitled to the benefits, citing legal precedents and emphasizing the correction of such errors through amendments. It directed Customs Authorities to allow the amendments upon production of a certified copy of the order, highlighting the appellants' substantial compliance and entitlement to the benefits as per export policy.

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Issues:
Appeal against rejection of request for no objection certificate for claiming MEIS by amending reward option in shipping bills.

Analysis:
The appellants filed three appeals against the Commissioner of Customs' order rejecting their request for amending the shipping bills to claim MEIS benefits. The issue in all three appeals was identical, leading to a common disposal. The appellants had mistakenly mentioned 'No' instead of 'Yes' in the MEIS benefit query in the shipping bills, causing non-transmission to the DGFT portal. The Commissioner rejected the amendment request citing the importance of declaring the intention for Customs examination norms and referencing a CBIC Circular. The appellants argued that the error was procedural and substantial compliance was evident on the face of the shipping bills. They relied on legal precedents, including a Madras High Court decision, to support their case. They also highlighted instances of similar amendments allowed at other ports.

The Tribunal considered both parties' submissions and examined the records. It noted that the appellants had actually declared their intention to claim MEIS benefits in two out of three cases, with the error being a procedural defect of mentioning 'N' instead of 'Y'. The Tribunal found the appellants entitled to claim MEIS benefits as per export policy and cited the Madras High Court and Delhi High Court decisions supporting the correction of such errors through amendments. It also mentioned instances of similar amendments being allowed at other ports. Referring to its own previous decision and a Kerala High Court judgment, the Tribunal concluded that the Commissioner's rejection of the amendment request was legally unsustainable. Consequently, the Tribunal set aside the impugned orders and directed the Customs Authorities to allow the amendments in the shipping bills upon production of a certified copy of the order. The appeals were allowed, and the operative portion of the order was pronounced in open court on 19/11/2019.

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