Export Incentives Can't Be Denied For Inadvertent Error In Shipping Bill: Karnataka High Court

The bench opined that …..there are situations where the assessee by inadvertence or even otherwise has uploaded certificate/forms or returns which contains some errors which would require correction. The said correction or amendment cannot be denied on the basis of the technological system which has been introduced by the Department to contend that the software does not allow for such amendment…….

The issue before Justice Suraj Govindaraj was whether the assessee would be entitled to claim export benefit on a subsequent date if not so claimed along with original shipping bill.

The assessee had uploaded the shipping bills. In the column indicating the claim for export benefit, inadvertently, the assessee had not selected the option 'Yes' in the relevant field in the form.

In fact, the assessee had selected the option 'No' in the form and as such, export benefit in relation to the advantage was not provided to the assessee.

The assessee had approached the department for amendment of the said shipping bill and for grant of export benefit.

The said application was not accepted on the ground that the shipping bills have been provided in the online manner and there is no scope for amendment of the online shipping bill and furthermore, there is no procedure envisaged for a manual amendment of shipping bill which is submitted in online.

The department argued that there can be denial of the export benefit as available to the assessee in terms of shipping bill which have been uploaded through online. However, since there is no procedure which is envisaged for amendment through online or for manual amendment, the request of the assessee could not be processed.

The bench stated that ………prior to software being introduced, it was always available to allow amendment of the documents by the petitioner physically by submitting the application which would be considered by the concerned authorities. Merely because of a software system is introduced, it would not mean that the software would override the principles of natural justice and rights of the parties. The software cannot govern the relationship between the assessee and the revenue.

The bench stated that it would therefore require for the revenue to implement such features as may be required in the software to enable the petitioner to amend any of the documents filed subject of course to certain restrictions and supervision of the concerned authorities.

The bench held that the assessee would be entitled for export benefit even though no claim is made at the time of uploading the shipping bills.

In view of the above, the bench allowed the petition.

Case Title: Louis Dreyfus Company India Pvt. Ltd. v. Union of India

Case Number: WRIT PETITION NO. 9005 OF 2025 (T-CUS)

Counsel for Petitioner/Assessee: Pradeep Nayak and Kishore Kunal

Counsel for Respondent/Department: Akash B. Shetty and Madanan Pilai

Citation No: 2025 LiveLaw (Kar) 275

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