2024 (5) TMI 1352 - HC - Customs

Export incentive claims under Focus Product Scheme and Merchandise Export from India Scheme allowed after rejection order quashed

M/s. MAK Controls and Systems (P) Ltd., Represented by its Managing Director, Saravanan Manickam Versus Union of India, Policy Relaxation Committee, The Joint Director General of Foreign Trade, Tamil Nadu

M/s. MAK Controls and Systems (P) Ltd., Represented by its Managing Director, Saravanan Manickam Versus Union of India, Policy Relaxation Committee, The ... Issues:Challenge to rejection of export incentive scheme claim under FPS and MEIS Scheme.Analysis:The petitioner, a company engaged in manufacturing and selling power supply systems, challenged the rejection of its incentive claims under the Focus Product Scheme (FPS) and Merchandise Export from India Scheme (MEIS). The petitioner had indigenized systems previously imported by defense organizations and applied for incentives for exports to Israel. The petitioner shipped batches of supplies to Israel and applied for FPS and MEIS incentives, but the claims were rejected. The petitioner filed a review before the Policy Relaxation Committee, which also rejected the claim. The respondents argued that the petitioner should have exhausted the review process before approaching the court. However, the court noted similar cases where rejection of claims was set aside, emphasizing the importance of eligibility criteria under the schemes.The court referred to previous judgments, including one by the High Court of Bombay, where communication rejecting claims was set aside for re-examination by the Director General of Foreign Trade. The court highlighted the need for a fresh representation and proper consideration of the petitioner's claim under the FTP. Another judgment by the High Court of Delhi emphasized the correct application of exclusionary clauses and the obligation to follow binding judgments. The court quashed the impugned order and directed the third respondent to allow the petitioner's claim under the FPS and MEIS Scheme within four weeks.In conclusion, the court allowed the Writ Petition, setting aside the rejection of the petitioner's export incentive claims under FPS and MEIS Schemes. The court directed the third respondent to process the petitioner's claim within a specified timeframe, following the principles established in previous judgments. No costs were awarded in the matter.