CESTAT Mumbai quashed MEIS-related duty demand, holding that export assessments had attained finality. The tribunal ruled that reopening expired without jurisdiction.
MEIS Duty Demand Set Aside as Export Assessments Final: CESTAT
CESTAT, Mumbai, has set aside a duty demand raised under the Merchandise Exports from India Scheme (MEIS), holding that the underlying export assessments had attained finality. The tribunal ruled that the department lacked jurisdiction to reopen matters after the statutory period expired.
The dispute arose when customs sought to deny duty credits based on post-facto verification. CESTAT held that once export assessments are time-barred from revision, the department cannot indirectly challenge them through MEIS disallowance. The tribunal relied on the principle of res judicata and statutory finality under Section 27(4) of the Customs Act.
This decision strengthens the legal certainty of export incentives. Practitioners should cite this in cases where MEIS claims are contested based on stale assessments. The ruling limits the retrospective use of compliance audits to deny benefits after finality.
Citations
- Customs Act, 1962, Section 27(4)