MEIS eligibility continues for revised tariff codes when classification changes do not bring an express policy exclusion.

Revised ITC HS Codes 29214920 and 29215940, introduced to align customs classification with the Finance Act, 2019, were not expressly excluded from Appendix 3B, Table 2 of the MEIS schedule. The court found that the new tariff items were carved out from earlier entries and remained linked to them, while the later public notice and CBIC office memorandum supported continuity of coverage. On that basis, the communication denying export incentive on the ground that the revised codes fell outside the schedule was unsustainable, and MEIS benefit was held available for the relevant products up to 31.12.2020.

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Issues: Whether the revised ITC HS Codes 29214920 and 29215940 were excluded from the MEIS schedule so as to deny the petitioner export incentive under the scheme, and whether the petitioner was entitled to MEIS benefit till 31.12.2020.

Analysis: The revised tariff items were introduced only to synchronise the customs classification with the Finance Act, 2019. The record showed that the new CTIs 29214920 and 29215940 were carved out from the earlier CTIs and were not specifically excluded from Appendix 3B, Table 2 of the MEIS schedule. The later public notice and the office memorandum issued by CBIC also supported the position that these items remained linked to the earlier entries and had not been removed from the scheme by any express policy exclusion. In those circumstances, the communication denying the benefit on the footing that the new codes were outside the schedule was unsustainable.

Conclusion: The petitioner was held entitled to MEIS benefit in respect of the products falling under ITC HS Codes 29214920 and 29215940 up to 31.12.2020, and the denial of such benefit was set aside.

Ratio Decidendi: Where revised tariff codes are introduced merely for classification alignment and are not expressly excluded from the incentive schedule, the scheme benefit continues for those entries until the scheme's operative period ends.

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