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Kerala High Court

Kitex Childrenswear Ltd vs Union Of India on 15 July, 2024

Author: P Gopinath

Bench: P Gopinath

               IN THE HIGH COURT OF KERALA AT ERNAKULAM
                               PRESENT
                THE HONOURABLE MR. JUSTICE GOPINATH P.
        MONDAY, THE 15TH DAY OF JULY 2024 / 24TH ASHADHA, 1946
                        WP(C) NO. 6650 OF 2024
PETITIONER:

            KITEX GARMENTS LTD,
            P.B. NO. 5, KIZHAKKAMBALAM, ALUVA, COCHIN,
            REPRESENTED BY MR. MANOJ. T.P., AGM - FINANCE &
            ACCOUNTS, PIN - 683562.
            BY ADVS.
            P.R.VENKATESH
            ASHA P.KURIAKOSE
            LAKSHMI MEENAKSHI P.R.


RESPONDENTS:

    1       UNION OF INDIA,
            REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE
            (DEPARTMENT OF REVENUE), 14, HUDCO VISHALA BLDG, B
            WING, 6TH FLOOR, BHIKAJI CAMA PLACE, NEW DELHI,
            PIN - 110066.
    2       CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS,
            DRAWBACK DIVISION, GOVERNMENT OF INDIA, MINISTRY OF
            FINANCE, DEPARTMENT OF REVENUE 14, HUDCO VISHALA BLDG,
            B WING, 6TH FLOOR, BHIKAJI CAMA PLACE, NEW DELHI,
            PIN - 110066.
    3       COMMISSIONER OF CUSTOMS (APPEALS) ,
            CUSTOMS HOUSE, COCHIN, PIN - 682009.
    4       PRINCIPAL DIRECTOR GENERAL,
            DIRECTORATE GENERAL OF SYSTEMS AND DATA MANAGEMENT,
            INDIRECT TAX & CUSTOMS, 4TH & 5TH FLOOR, HOTEL SAMRAT,
            CHANAKYAPURI, NEW DELHI, PIN - 110021.
    5       DY. COMMISSIONER OF CUSTOMS (DRAWBACK),
            OFFICE OF THE COMMISSIONER OF CUSTOMS, CUSTOMS HOUSE,
            WILLINGDON ISLAND, COCHIN, PIN - 682009.
            BY ADV P.G.JAYASHANKAR


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.07.2024, ALONG WITH WP(C).6685/2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 WP(C) NOS. 6650 & 6685 OF 2024      2




                IN THE HIGH COURT OF KERALA AT ERNAKULAM
                                 PRESENT
                 THE HONOURABLE MR. JUSTICE GOPINATH P.
         MONDAY, THE 15TH DAY OF JULY 2024 / 24TH ASHADHA, 1946
                          WP(C) NO. 6685 OF 2024
PETITIONER:

             KITEX CHILDRENSWEAR LTD.,
             P.B. NO. 5, KIZHAKKAMBALAM, ALUVA, COCHIN, REPRESENTED
             BY MR. THOMAS CHERIAN, DIRECTOR (SOURCING),
             PIN - 683562.

             BY ADVS.
             P.R.VENKATESH
             ASHA P.KURIAKOSE
             LAKSHMI MEENAKSHI P.R.


RESPONDENTS:

     1       UNION OF INDIA,
             REPRESENTED BY THE SECRETARY, MINISTRY OF FINANCE
             (DEPARTMENT OF REVENUE), 14, HUDCO VISHALA BLDG, B
             WING, 6TH FLOOR, BHIKAJI CAMA PLACE, NEW DELHI,
             PIN - 110066.
     2       CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS,
             DRAWBACK DIVISION, GOVERNMENT OF INDIA, MINISTRY OF
             FINANCE, DEPARTMENT OF REVENUE 14, HUDCO VISHALA BLDG,
             B WING, 6TH FLOOR, BHIKAJI CAMA PLACE, NEW DELHI. REP.
             BY ITS CHAIRMAN, PIN - 110066.
     3       COMMISSIONER OF CUSTOMS (APPEALS),
             CUSTOMS HOUSE, COCHIN, PIN - 682009.
     4       PRINCIPAL DIRECTOR GENERAL,
             DIRECTORATE GENERAL OF SYSTEMS AND DATA MANAGEMENT,
             INDIRECT TAX & CUSTOMS, 4TH & 5TH FLOOR, HOTEL SAMRAT,
             CHANAKYAPURI, NEW DELHI, PIN - 110021.
     5       DY. COMMISSIONER OF CUSTOMS (DRAWBACK) ,
             OFFICE OF THE COMMISSIONER OF CUSTOMS, CUSTOMS HOUSE,
             WILLINGDON ISLAND, COCHIN, PIN - 682009.


             BY ADV P.G.JAYASHANKAR
 WP(C) NOS. 6650 & 6685 OF 2024   3


      THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
15.07.2024, ALONG WITH WP(C).6650/2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
 WP(C) NOS. 6650 & 6685 OF 2024      4


                                 JUDGMENT

[WP(C) Nos.6650/2024, 6685/2024] The petitioners have been denied the benefit of the 'Rebate of State and Central Taxes and Levies Scheme' (the Scheme) in respect of certain shipping bills filed by them during the period from 1.1.2021 to 30.9.2021. It is clear from the statement filed by the learned Standing Counsel appearing for the 5 th respondent in both the cases and the submissions made across the Bar that the denial of the benefit was on account of some mistakes committed by the petitioners while making a claim for the benefits under the Scheme through the on-line mode.

2. The learned counsel appearing for the petitioners relies on the judgment of this Court in W.P.(C) No.27126 of 2019 and connected case to contend that mistakes committed by the exporter cannot be a ground to deny genuine claims under the Scheme. It is submitted that this Court in the aforesaid judgment has directed the consideration of the claim (in that case) by permitting the applicants to make a fresh application after curing defects, if any. It is submitted that the provisions of Section 149 of the Customs Act, 1962 also permits the amendment of shipping bills and therefore the petitioners in these cases may be permitted to make suitable amendments to the documents already filed. WP(C) NOS. 6650 & 6685 OF 2024 5

3. The learned Senior Standing Counsel appearing for the respondent - Department would submit that on the basis of directions issued by this Court, instructions were obtained from the Director General (Systems) of the respondent - Department and it has been confirmed that the claim in respect of the shipping bills in question has been denied on account of a mistake by the petitioners while uploading the documents for claiming the benefit of the Scheme.

Having heard the learned counsel appearing for the petitioners and the learned Senior Standing Counsel appearing for the respondent - Department, this writ petition will stand disposed of directing that if the petitioners file an application for amendment of the documents already filed before the 5 th respondent, the said respondent shall consider the same and permit the necessary corrections. If the 5 th respondent is not the competent authority, he shall forward any application made by the petitioners to the competent authority who shall permit the petitioners to make necessary corrections. After the petitioners are permitted to make necessary corrections, the claim in respect of the shipping bills in question shall be considered in accordance with the law. If the petitioners file a request for correction before the 5th respondent as directed above within a period of two weeks from the date of receipt of a certified copy of this judgment, the 5 th WP(C) NOS. 6650 & 6685 OF 2024 6 respondent or the competent authority shall consider and dispose of such claim without further delay and at any rate, within two months from the date of the application, in terms of the provisions of the Scheme.

Sd/-

GOPINATH P. JUDGE Sru WP(C) NOS. 6650 & 6685 OF 2024 7 APPENDIX OF WP(C) 6685/2024 PETITIONER'S EXHIBITS Exhibit P1 TRUE COPY OF THE LETTER REFERRING CIRCULAR NO. 22/2021-CUS SENT ON 30.09.2021 BY PETITIONER.

Exhibit P2 TRUE COPY OF THE ADVISORY NO. 23/2021 DATED 30.09.2021 ISSUED BY THE 4TH RESPONDENT. Exhibit P3 TRUE COPY OF THE COMPLAINT DATED 7.9.2022 SUBMITTED BY THE PETITIONER.

Exhibit P4 TRUE COPY OF REPLY SENT TO THE PETITIONER DATED NIL.

Exhibit P5 TRUE COPY OF THE COMMUNICATION DATED 1.8.2022 SHARING THE DETAILS IN EXCEL FORMAT.

Exhibit P6 TRUE COPY OF THE COMPLAINT DATED 30.12.2022 RAISED BY THE PETITIONER.

Exhibit P7 TRUE COPY OF SHIPPING BILL NO. 4962563 DATED 29.9.2021.

Exhibit P8 TRUE COPY OF THE SHIPPING BILL NO. 4583726 DATED 14.9.2021.

Exhibit P9 TRUE COPY OF THE REPRESENTATION DATED 7.2.2023 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT.

Exhibit P10 TRUE COPY OF THE REPRESENTATION DATED 11.2.2023.

Exhibit P11 True copy of Advisory No. 50/20 dated 31.12.2020.

Exhibit P12 True copy of the judgment dated 13.11.2019 in W.P.(C) No. 25339/2019.

 WP(C) NOS. 6650 & 6685 OF 2024     8


                       APPENDIX OF WP(C) 6650/2024

PETITIONER'S EXHIBITS
Exhibit P1            TRUE COPY OF THE CIRCULAR NO. 22/2021-CUS
                      DATED    30.09.2021    ISSUED   BY   THE   2ND
                      RESPONDENT.
Exhibit P2            TRUE COPY OF THE ADVISORY NO. 23/2021 DATED

30.09.2021 ISSUED BY THE 4TH RESPONDENT. Exhibit P3 TRUE COPY OF THE COMPLAINT DATED 30.7.2022 SUBMITTED BY THE PETITIONER.

Exhibit P4 TRUE COPY OF REPLY SENT TO THE PETITIONER. Exhibit P5 TRUE COPY OF THE COMMUNICATION DATED 1.8.2022 SHARING THE DETAILS IN EXCEL FORMAT.

Exhibit P6 TRUE COPY OF THE COMPLAINT DATED 30.12.2022 RAISED BY THE PETITIONER.

Exhibit P7 TRUE COPY OF SHIPPING BILL NO. 4471412 DATED 9.9.2021.

Exhibit P8 TRUE COPY OF THE SHIPPING BILL NO. 4058929 DATED 23.8.2021.

Exhibit P9 TRUE COPY OF THE REPRESENTATION DATED 7.2.2023 SUBMITTED BY THE PETITIONER TO THE 3RD RESPONDENT.

Exhibit P10 TRUE COPY OF THE REPRESENTATION DATED 11.2.2023.

Exhibit P11 True copy of Advisory No. 50/20 dated 31.12.2020.

Exhibit P12 True copy of the judgment dated 13.11.2019 in W.P.(C) No. 25339/2019.