Benefit of MEIS scheme undeniable for past disputes between department and assessee: HC

Case Details: M.K. Exim (India) Ltd. v. Union of India - [2022] 137 taxmann.com 88 (Rajasthan)

Judiciary and Counsel Details

• • Akil Kureshi, CJ. and Uma Shanker Vyas, J.
  • Anil Balani, Daksh Pareek and Arjun Singh for the Petitioner. 
  • Anand Sharma for the Respondent.

Facts of the Case

The assessee was placed in denied entity list on allegations of unauthorized diversion of imported goods in local market during period 2002-03 and it filed appeal against this decision which was pending. Later, the department issued a trade notice on 11th September 2018 for online applications for MEIS under the system driven approval mechanism. This trade notice provided that this facility would not be available besides others, to those applicant-firms who were placed in the denied entity list or suspended IEC or cancelled IEC. It filed writ petition to challenge the denial of benefit of export incentives in relation to entirely different transactions.

High Court Held

The Honorable High Court observed that there was nothing under MEIS scheme suggesting that for any past unrelated events of dispute between the department and the petitioner, export incentive in the present would be denied to the exporter. Therefore, it was held that benefit of MEIS scheme can’t be denied for any past unrelated events of dispute between department and assessee and trade notice can’t decide rights of assessee under scheme. Also, the authorities were directed to permit assessee to make application within time envisaged in scheme for incentive under MEIS scheme.