MEIS scrip validity turns on prior cancellation and export substance, not a later administrative view of ineligibility.

MEIS scrip registration was considered unsustainable where the exporter had received foreign exchange, the FTWZ served only as a warehousing or logistics facility, and the export was treated in substance as the petitioner's export through that arrangement. The text states that entitlement under MEIS must still be tested against policy exclusions, but a scrip issued after due scrutiny cannot be denied registration on a later administrative view of ineligibility unless it is first cancelled under the governing cancellation provision. It also notes that the refusal was not treated as appealable for want of a statutory appellate remedy. Relief was therefore granted to the assessee.

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Issues: Whether rejection of registration and TRA for MEIS scrips was valid on the footing that the underlying exports fell within the ineligible categories under the Foreign Trade Policy, and whether the absence of cancellation under the statutory cancellation provision affected the validity of the scrips.

Analysis: The entitlement under MEIS had to be tested against the policy exclusions, but the materials showed that the petitioner was the exporter, the consideration was received from the foreign buyer in foreign exchange, and the FTWZ functioned only as a warehouse or logistics facility. The transactions were not treated as exports by a unit in FTWZ, but as exports by the petitioner through the FTWZ arrangement. The issuance of the scrips had followed due scrutiny, and in the absence of any cancellation action under the statutory cancellation provision, the scrips continued to remain valid. The objection that the impugned order was appealable was also rejected for want of a statutory appellate remedy against such refusal.

Conclusion: The rejection of registration was unsustainable. The petitioner's interpretation was accepted, the impugned order was set aside, and relief was granted in favour of the assessee.

Ratio Decidendi: A scrip issued after due scrutiny cannot be denied registration on a later administrative view of ineligibility unless the scrip is first cancelled in accordance with the governing cancellation provision, and FTWZ warehousing by itself does not make the exporter ineligible where the export is in substance made by the petitioner.

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