RoSCTL Scheme benefits cannot be denied due to technical errors when eligibility criteria are met

Gujarat HC held that RoSCTL Scheme benefits cannot be denied due to technical errors or system glitches when substantive conditions are satisfied. Following precedent from Bombardier Transportation case regarding MEIS Scheme benefits, the court ruled that once a person meets eligibility criteria, technical defects in electronic systems cannot bar entitlement to statutory benefits. The authorities were directed to grant RoSCTL benefits within eight weeks. Petition allowed.

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Issues:
1. Petitioner seeking RoSCTL Scheme benefits for exports made under specific shipping bills.
2. Denial of benefits by respondent based on system limitations post-export.
3. Interpretation of whether technical errors can override accrued rights under law or schemes.

Analysis:

Issue 1: Petitioner seeking RoSCTL Scheme benefits
The petitioner approached the court seeking directions to allow RoSCTL Scheme benefits for exports made under Shipping Bill No. 6448377 dated 02.12.2021 and Shipping Bill No.6791033 dated 16.12.2021. The petitioner had obtained an Amendment Certificate from the competent authority on 09.09.2022, confirming eligibility for RoSCTL Scheme benefits amounting to Rs.13,69,000.

Issue 2: Denial of benefits based on system limitations
The respondent denied the petitioner the RoSCTL Scheme benefits, citing system restrictions that do not allow online amendments in shipping bills post-export and filing of Export General Manifests. The respondent argued that the denial of benefits was not illegal due to technical limitations of the system. However, the respondent did not dispute the actual export or the amendment of shipping bills under Section 149 of the Customs Act.

Issue 3: Interpretation of technical errors overriding accrued rights
The court considered whether technical errors or glitches in the system could override rights accrued under law or schemes. The court referred to a previous judgment related to the MEIS Scheme, where it was held that benefits entitled to a person under substantive conditions cannot be denied due to technical errors in the electronic system. The court found the facts of the present case similar to the previous judgment and ruled in favor of the petitioner.

In conclusion, the court allowed the petition and directed the respondent to grant the RoSCTL Scheme benefits to the petitioner within eight weeks from the date of the order. The judgment emphasized that technical errors should not hinder the rightful entitlements of parties under established laws or schemes, reiterating the principle that substantive rights cannot be denied due to system limitations.

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