TaxTMI 
TaxTMI 
2023 (9) TMI 315
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....he present Letters Patent Appeal (the "LPA") has been preferred by the Appellant Authority/Director General of Foreign Trade (the "DGFT") against judgement dated 22.02.2023 passed by the learned Single Judge (the "Impugned Judgement") in W.P.(C) No. 2575/2022 titled Horizon Aerospace (India) Pvt. Ltd. vs. Union of India & Ors. (the "Writ Petition") whereby the Writ Petition filed by the Respondent Company was allowed. 2. The facts of the case reveal that the Respondent Company is engaged in the global supply of aircraft allied goods and products. On 07.06.2017, the Respondent Company received a purchase order from Dedienne Aerospace, France ("DA") for the supply of certain goods. Thereafter, in lieu of their supply of goods to DA, the Re....
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....of the Foreign Trade Policy 2015-2020 (the "FTP") (hereinafter, the benefit applied for by the Respondent Company is referred to as "MEIS Scrips"). The Respondent Company through its application dated 10.05.2021, sought MEIS Scrips amounting to INR 42, 18,906/- against the Bill of Export. 6. The Respondent Company was granted MEIS Scrips amounting to INR 42, 18,906/- by the Assistant Director General of Foreign Trade (the "Asst. DGFT") vide letter dated 11.06.2021. However, the same was proposed to be cancelled vide show cause notice dated 14.07.2021 ("Show Cause Notice") issued by the Asst. DGFT on grounds that the Respondent Company had misrepresented its supply destination as France in its application. The Show Cause Notice stated tha....
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....8. In furtherance of the Show Cause Notice, the Respondent Company was granted a hearing by the Asst. DGFT on 22.07.2021 wherein the following additional documents were produced by the Respondent Company: (i) No Objection Certificate ("NOC") issued by Siddhartha Logistics which records unconditional consent given to the Respondent Company to claim benefits against the Bill of Export, (ii) Shipping Bill dated 30.07.2018, raised by Siddhartha Logistics which reflects Siddhartha Logistics as the Exporter; DA as the Consignee and Respondent Company as the Client (the "Shipping Bill") and lastly, e-Bank Realization Certificates ("e-BRCs") of the Respondent Company which reflects the details of the Bill of Export and records the....
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....Ors. 2022(2) Bom CR 272. In Ashwini Dighe (supra) the Court upheld the principle emerging from Jindal Drugs (supra) but on a factual assessment of the documents on record therein, held that the Petitioner therein was not entitled to MEIS Scrips as they failed to satisfy the burden of proving their export transaction. 11. In the Impugned Judgement, the Learned Single Judge held that the decisions in Jindal Drugs (supra) and Ashwini Dighe (supra) were squarely applicable to the facts of the present case. On an assessment of the documents and payments on record, the Learned Single Judge concluded that mere misdescription in the Bill of Export would not disentitle the Respondent Company from MEIS Scrips as it does not change the actual factu....
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....nt Company constitutes an ineligible category of supply under Clause 3.06(i) of the FTP i.e., made from a DTA unit (Respondent Company) to a SEZ/FTWZ Unit (Siddhartha Logistics). It is further clarified by the DGFT that the benefit of MEIS Scrips also cannot be granted to Siddhartha Logistics against the consequent export undertaken by them as the supply therein constitutes export made by an FTWZ unit (Siddhartha Logistics) and is therefore ineligible under Clause 3.06(vii) of the FTP. 14. In the considered opinion of this Court, the contention advanced by the DGFT is contrary to the factual position evidenced by the documents and payments on record. The Respondent Company has produced its Export Invoice, Bill of Export, and e-Bank Reali....
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....ically, the MEIS Scrips are offered under the MEIS which provides rewards to exporters to offset infrastructural inefficiencies and associated costs. The objective of the MEIS, as defined under Clause 3.03 of the FTP, is reproduced as under: "3.03 Objective Objective of the Merchandise Exports from India Scheme (MEIS) is to promote the manufacture and export of notified goods/ products." 17. A reading of the aforesaid clauses makes it clear that the MEIS and the benefits offered by the Government thereunder, including the MEIS Scrips have been introduced to make Indian exports more competitive. In light of the above, the interpretation preferred by the DGFT appears to defeat the purpose of the MEIS Scrips and consequent....