MEIS eligibility for FTWZ-linked supplies requires clear documentary proof; bare assertions cannot establish entitlement to export incentive.

Eligibility for MEIS duty credit scrips required the claimant to bring the transaction within the policy framework and outside the ineligible categories in paragraph 3.06 of FTP 2015-20. Supplies from a DTA unit to an FTWZ unit, and exports by an FTWZ unit, were treated as ineligible, and the petitioner's assertion that the FTWZ acted only as custodian for an overseas buyer was unsupported by clear pleadings or documentary proof. In the absence of a verifiable contractual or transactional link with the alleged foreign buyer, the rejection of the MEIS claim was upheld. Liberty was granted to submit a fresh application with complete supporting material for consideration in accordance with law.

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Issues: Whether the petitioner was entitled to Duty Credit Scrips under the Merchandise Export from India Scheme for supplies made to an FTWZ unit and subsequently exported, and whether rejection of the claim was sustainable in the absence of proof of a direct transaction with the overseas buyer.

Analysis: Entitlement under MEIS depends upon the export being covered by the policy framework and not falling within the ineligible categories in paragraph 3.06 of the FTP 2015-20. The Court noted that supplies made from a DTA unit to an FTWZ unit and exports made by an FTWZ unit are treated as ineligible under the policy. The petitioner's case rested on the assertion that the FTWZ unit merely acted as a custodian for the overseas buyer and that the real transaction was with the foreign buyer. However, the documentary material placed on record did not establish a direct and verifiable contractual or transactional link with the stated overseas buyer, and the record contained discrepancies regarding the identity of the buyer. The Court held that in writ proceedings a factual claim of this nature must be supported by pleadings and documentary proof, and mere assertions were insufficient.

Conclusion: The petitioner failed to prove eligibility for MEIS benefit, and the rejection of the claim was upheld.

Final Conclusion: The writ petition did not succeed on merits, though liberty was granted to file a fresh application with complete supporting material for consideration in accordance with law.

Ratio Decidendi: A claimant seeking export incentive under MEIS must establish eligibility by clear pleadings and supporting documentary evidence, and supplies falling within the policy's ineligible FTWZ or DTA-to-SEZ categories cannot be treated as eligible exports on bare assertions.

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