Court Orders Consideration of Petitioner's MEIS Application on Merit

The court directed authorities to allow the petitioner to apply for Merchandise Export from India Scheme (MEIS) benefits within the scheme's timeline and evaluate the application based on scheme provisions. The court emphasized that past disputes should not automatically disqualify an exporter from present incentives unless specified in the scheme. The court disposed of the petition, directing authorities to consider the petitioner's MEIS application on merit and left the issue of removing the petitioner's name from the Denied Entity List (DEL) for the petitioner to pursue through appeal.

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Issues:
Petitioner's request to remove name from Denied Entity List (DEL) and accept online application for Merchandise Export from India Scheme (MEIS) benefits.

Analysis:
The petitioner, a registered company, faces allegations of failing export obligations due to clandestine diversion of raw materials and manufacturing goods with locally produced materials. Orders passed by Directorate of Revenue Intelligence (DRI) and Customs Department led to financial penalties and placement in DEL. The petitioner challenged these orders, pending appeal. The Assistant Director General of Foreign Trade discontinued granting licenses to the petitioner and placed them in DEL. The petitioner sought relief to apply for MEIS benefits before the scheme's deadline.

The court noted that export incentives are discretionary, not a vested right. The petitioner's past actions led to denial of MEIS benefits based on being in DEL. The court highlighted that while past actions impact future export opportunities, denying unrelated benefits without scheme provisions is impermissible. The court emphasized that past disputes should not automatically disqualify an exporter from present incentives unless specified in the scheme.

The court reviewed guidelines for maintaining DEL, noting it aims to restrict advance authorization licenses for entities defaulting in export obligations. The court rejected the argument that the petitioner must pay all penalties to claim MEIS benefits, as the orders are under appeal. Coercive recovery methods cannot block future incentives unrelated to the disputed amounts. The court directed authorities to allow the petitioner to apply for MEIS benefits within the scheme's timeline and evaluate the application based on scheme provisions.

In conclusion, the court disposed of the petition, directing authorities to consider the petitioner's MEIS application on merit. The court refrained from addressing the request to remove the petitioner's name from DEL, leaving it for the petitioner to pursue through appeal.

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