Case Details: Shah Nanji Nagsi Exports Pvt. Ltd. Versus Union of India (2025) 33 Centax 360 (S.C.)
Judiciary and Counsel Details
- Aravind Kumar & N.V. Anjaria, JJ.
- S/Shri Gagan Sanghi, Mrs. Farah Hashmi, Advs., Rameshwar Prasad Goyal, AOR
- S/Shri S. Dwarakanath, A.S.G., Rohit Khare, Digvijay Dam, Navanjay Mahapatra, Ishaan Sharma, Raghav Sharma, Rajat Vaishnaw, Abhyudey Kabra, Advs., Raj Bahadur Yadav, Gurmeet Singh Makker, AOR’s
Facts of the Case
Petitioner is engaged in export of corn starch, filed 54 shipping bills under Serial No. 467 of Appendix 3B of FTP 2015-20, eligible for MEIS benefits. Due to an inadvertent error by its customs broker, the declaration of intent to claim MEIS reward was marked as ‘No’ instead of ‘Yes,’ preventing transmission to DGFT. The appellant sought and obtained an amendment under Section 149 of the Customs Act, substituting ‘No’ with ‘Yes.’ Despite this correction, DGFT declined to process the claim, citing system limitations, and PRC rejected the request without reasons or hearing. The High Court dismissed the appellant’s writ petition, holding the error attributable to the broker, leading to the present appeal before the Supreme Court.
Supreme Court held
The Supreme Court held that MEIS under Chapter 3 of the FTP is a beneficial scheme, and once exports are genuine and fall within the notified category, a procedural lapse, when duly corrected under statutory authority, cannot defeat the substantive right to claim benefits. The PRC’s rejection, passed without reasons or hearing, was quashed as violative of natural justice, and the authorities were directed to process the appellant’s MEIS claim on the basis of amended shipping bills within twelve weeks.
List of Cases Reviewed
- Shah Nanji Nagsi Exports Pvt. Ltd. v. Union of India — (2025) 33 Centax 359 (Bom.) — Reversed [Paras 7, 15]
List of Cases Reviewed
- Larsen and Toubro Ltd. v. Union of India — (2024) SCC Online Bom 3565 — Relied on [Paras 13, 16]
- Portescap India Pvt. Ltd. v. Union of India — 2021 (376) E.L.T. 161 (Bom.) — Relied on [Paras 7, 8, 11, 16]
- Technocraft Industries (India) Ltd. v. Union of India — 2023 (384) E.L.T. 293/(2023) 4 Centax 11 (Bom.) (Bom.) = 2023 (384) E.L.T. 293/(2023) 4 Centax 11 (Bom.) — Relied on [Paras 12, 16]
