Customs cannot unilaterally deny DEPB benefit after scrip issuance; objections must go to the licensing authority first.

Customs authorities cannot unilaterally deny DEPB benefit once the competent licensing authority has issued the scrip granting the export incentive. If customs objects to the scrip or the underlying export description, it should raise the objection and refer the matter to the licensing authority for modification, cancellation, or other action. A post-export, vague doubt that the goods were not embossed with the required legend is not sufficient to refuse the benefit already accorded under the export policy. On that basis, denial of DEPB benefit without value cap was improper and the exporter remained entitled to the scrip benefit.

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Issues: Whether the customs authorities could deny the DEPB benefit without value cap on the ground that the export goods were allegedly not embossed with the required legend, after the DGFT had issued the scrip granting the benefit.

Analysis: The export benefit had been granted by the competent licensing authority under the export policy. The customs authorities, while verifying the scrip, ought to have recorded their objections and referred the matter to the licensing authority for suitable modification, cancellation, or other action. A unilateral denial of the scrip benefit by customs was not justified. In any event, once the goods had already been exported, a vague doubt as to whether the required legend was embossed could not form the basis for denying the benefit that had been accorded by the competent authority.

Conclusion: The denial of DEPB benefit without value cap was improper, and the exporter was entitled to the benefit.

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