ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 02.09.2025
Supreme Court- Procedural Errors in Shipping Bills Cannot Defeat Export Incentivesโ โ โ โ โ
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant judgment delivered on August 19, 2025, the Supreme Court of India has provided much-needed clarity on the rights of exporters under the Merchandise Exports from India Scheme (MEIS). The case, M/S Shah Nanji Nagsi Exports Pvt. โ Ltd. v. Union of India & Ors. โ, highlights the importance of balancing procedural compliance with substantive entitlements under beneficial export schemes. โ
Background of the Case
The appellant, M/S Shah Nanji Nagsi Exports Pvt. โ Ltd., a private company engaged in the export of corn starch, faced a procedural hurdle that jeopardized its claim for MEIS benefits. Between July and October 2017, the company filed 54 shipping bills electronically through its customs broker. โ However, due to an inadvertent clerical error, the declaration of intent to claim MEIS benefits was marked as โNoโ instead of โYes.โ This error prevented the shipping bills from being transmitted to the Directorate General of Foreign Trade (DGFT), thereby blocking the processing of the MEIS claim. โ
Despite the correction of the shipping bills under Section 149 of the Customs Act, 1962, the DGFT refused to process the claim, citing systemic constraints. โ The Policy Relaxation Committee (PRC) also rejected the claim without assigning reasons or granting the appellant an opportunity to be heard. โ Aggrieved, the appellant approached the Bombay High Court, which dismissed the writ petition, relegating the appellant to pursue remedies against the customs broker.
Source: Supreme Court
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