MEIS eligibility upheld despite Bill of Export misdescription and FTWZ routing where real foreign sale was proved.

Misdescription in the Bill of Export and routing goods through an FTWZ logistics intermediary did not disqualify the exporter from MEIS scrips where the record showed the foreign buyer was the purchaser and export proceeds were realised. The export invoice, bill of export, e-BRCs, NOC, shipping bill and cargo receipt established that the FTWZ entity acted only as a storage and facilitation intermediary. The Delhi HC held that the ineligibility clauses in the Foreign Trade Policy could not be applied to defeat the actual export transaction or the object of MEIS, and the cancellation of the scrips was unsustainable.

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Issues: Whether misdescription in the Bill of Export and routing of goods through an FTWZ logistics intermediary disentitled the exporter to MEIS scrips, notwithstanding proof of the underlying foreign sale and realization of export proceeds.

Analysis: The documents on record, including the export invoice, bill of export, e-BRCs, NOC, shipping bill and cargo receipt, established that the foreign buyer was the real purchaser and that the FTWZ entity acted only as an intermediary for storage and facilitation. The ineligibility clauses in the Foreign Trade Policy could not be applied in a manner that displaced the actual export transaction or defeated the object of the MEIS, which is to promote exports and improve competitiveness. The authorities' approach ignored the substance of the transaction and gave undue weight to a facilitative arrangement.

Conclusion: The exporter remained eligible for MEIS scrips and the cancellation of the scrips was unsustainable.

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