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4.For the export of subject goods, made between March 2016 to October 2019, the Audit Commissionerate, Customs, Chennai had initiated an enquiry into the exports made by the petitioners, and they were prima facie of the view that the goods, as declared in the shipping bills are to be classified under ITC(HS) codes 87012090, 87042219 and 87054000 and not under ITC(HS)87060042.

8.The 1st and 2nd respondents have filed counter affidavits and it has been adopted in all the writ petitions, since the issue involved is the same. They have taken a stand that initially, the MEIS incentives were provided based on both the product description and the ITC(HS) code. Later, the DGFT, through a public notice dated 16.02.2018, directed all the original authorities to process applications for MEIS claim only based on the ITC(HS) code specified on the shipping bill. Appendix 3(B) to the MEIS schedule provides for differential rates on MEIS incentives, based on the product exported and the country to which it is exported. Therefore, it is crucial that the product must be classified under the correct ITC(HS) classification. They have taken a further stand that the petitioners had exported the subject goods between March 2016 to October 2019, and that they have given a https://www.mhc.tn.gov.in/judis ( Uploaded on: 23/10/2025 01:24:37 pm ) WP.No.16643 of 2024 et., Batch misdescription of the subject goods, as if it falls under ITC(HS) 87060042 instead of ITC(HS) codes 87012090, 87042219 and 87054000. Hence, the Customs Department raised objections and the Assistant Commissioner passed an order to the effect that the subject property falls under ITC(HS) code 87042219. Against the said order, the petitioners filed an appeal before the Commissioner (appeals) and the same was also dismissed. As against the order passed in the appeal, the petitioners have filed an appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, and the same is pending. When the said appeal was pending, proceedings were initiated by DGFT by issuing show cause notice, and after affording an opportunity to the petitioners, the Adjudicating Authority rendered a finding that there is a misclassification of the subject goods, and that the petitioners had obtained MEIS incentives at the rate of 3% instead of 2%. Hence the Adjudicating Authority retrospectively cancelled the MEIS scrips issued to the excess of 1%. The same was also confirmed in the appeal by the Appellate Authority, after affording opportunity. Accordingly, they have taken a stand that there are no merits in these writ petitions and have sought for the dismissal of the same. https://www.mhc.tn.gov.in/judis ( Uploaded on: 23/10/2025 01:24:37 pm ) WP.No.16643 of 2024 et., Batch

9. I submit that in response to the audit Consultative Letter dated 12.03.2021, the Petitioner vide reply letter in Ref. No. DICV/096/2020-21 dated 16.03.2021 stated that they have been exporting chassis of Commercial vehicle fitted with cabin under HS code 87060042 ever since the inception of their exports. The Petitioner also stated that one shipping bill bearing no 9492296 dated 07.01.2020 ICD Irungattukottai was disputed with a proposal for re-classification of the export goode under ITC HS Code 8704. Later, the Assistant Commission, ICD Irungattukottai vide Order-in-Original No 6/2020 dated 30.01.2020 classified the export goods viz. "chassis of commercial vehicles fitted with cabin” under ITC HS Code 87042219 The Petitioner also vide its reply letter stated that they had filed an appeal with Commissioner (Appeals) against the order passed by the Assistant Commissioner and since the mater is sub judice, they requested not to initiate further proceedings until the matter attains finality and also to withdraw the audit consultative letter.
(g) Appendix 3B Sl.No.4527 is extracted hereunder:
Appendix 3B-MEIS Schedule Table 2 ITC (HS) Code wise list of products with reward rates under Merchandise Exports from India Scheme (MEIS) S.No. HS ITC(HS) Description of goods MEIS-Reward Rate (in%) Code Code Country Group Country Group Country Group Code A Code B Code C Wth Cmprsn Igntn Intrnl Cmbstn Pstn Engn Wth G.V.W.>5TonsBt<=20 Tons: