2026 (7) TMI 665

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) and are manufacturer and exporter of bulk drugs. They had exported Active Pharmaceutical Ingredients (API) under the Merchandised Export Incentive Scheme (MEIS). The respondent had inadvertently failed to click 'Yes' in the check box while filling in the entries in the shipping bills; thus, the EDI system denied the export benefit. Accordingly, the respondent requested for an amendment in the shipping bill which was allowed by the Commissioner in the impugned order. Aggrieved by this, Revenue is in appeal before us. 2. The learned Authorized Representative (AR) on behalf of the Revenue submits that since belatedly the respondent had claimed conversion from free shipping bill to MEIS, the benefit cannot be extended; hence, the Commissio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 11. This issue has received judicial consideration in a line of decisions of the Bombay High Court. In Portescap India Private Limited (supra), the Bombay High Court dealt with a similar situation where an exporter had inadvertently marked "N" (for No) instead of "Y" (for Yes) while filing shipping bills. The High Court held that such a mistake was purely procedural and, once corrected, could not extinguish substantive entitlement. The Court directed the authorities to process the claim, emphasising that the purpose of Chapter 3 of the FTP is to incentivise exports and that this object would be frustrated if inadvertent mistakes were treated as insurmountable. The ratio of Portescap (supra) is squarely applicable to the present case. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hapter 3 of the FTP is a beneficial one, intended to reward exporters. Once exports are genuine and fall within the notified category, inadvertent mistakes of procedure cannot be treated as fatal, especially where they are corrected under statutory authority. The rejection by the PRC, bereft of reasons and passed without hearing, falls foul of the principles of natural justice. The High Court's view that the appellant may proceed against the customs broker fails to address the statutory entitlement which accrues to the exporter under the scheme. Administrative technology must aid, not obstruct, the implementation of the law. 15. In light of the above discussion, the appeal deserves to be allowed. The judgment of the High Court ....