2014 (3) TMI 999 - AT - Customs

Conversion of shipping bills from one promotion incentive scheme to another after goods are exported - Held that - Commissioner (Appeals) misconstrued the provision of Section 149 of the Act as well as the instruction in Board Circular No. 4/2004-Cus., dated 16-1-2004 and entertained undue request of the exporter under a misplaced sympathy. When the goods left India under certain declaration in shipping bill mentioning an incentive scheme and such declaration met scrutiny of Customs from that angle at the time of clearance, no belated switchover to a different scheme is permitted by law for want of scrutiny of the export under the different scheme after export of the goods. Appellant does not have right under law to approach again for change of declaration under law after export is made. Subsequent approach for change proves material suppression of fact in prior declaration questioning conduct of appellant - A belated claim of different incentive scheme against export done cripples the applicant to seek such change. Proviso to Section 149 of the Act has mandate not to entertain any amendment to the scheme after export. Even Board s Circular No. 4/2004-Cus., dated 16-1-2004 in terms of para 3.2 is also made to seek such objective. In the present case belated request for conversion of incentive scheme is therefore not entertainable in law. - Decided in favour of Revenue.

Summary

Issues:
- Interpretation of Section 149 of the Customs Act, 1962
- Validity of changing incentive scheme on shipping bills post-export
- Compliance with Board Circular No. 4/2004-Cus.

Interpretation of Section 149 of the Customs Act, 1962:
The Revenue contended that there is no provision in the law allowing for the conversion of shipping bills to a different promotion incentive scheme after goods have been exported. The Revenue argued that the power under Section 149 of the Act can only be exercised while the goods are in the custody of Customs, and any amendment to the bills after clearance of goods is prohibited. The Tribunal emphasized that the amendment to the bill of entry or shipping bills post-clearance is not permissible under the proviso to Section 149 of the Act.

Validity of changing incentive scheme on shipping bills post-export:
The Tribunal noted that the Commissioner (Appeals) had misconstrued the provisions of Section 149 of the Act and the guidelines in Board Circular No. 4/2004-Cus. The Tribunal highlighted that once goods have been exported under a specific declaration mentioning an incentive scheme, there is no provision in the law for a belated switch to a different scheme. The Tribunal emphasized that the exporter must declare the appropriate incentive scheme in the shipping bills initially to undergo scrutiny by Customs before export, and any subsequent request for a change in the scheme is not permissible under the law.

Compliance with Board Circular No. 4/2004-Cus.:
The Tribunal pointed out that the belated request for the conversion of the incentive scheme is not permissible under the law, in line with the provisions of para 3.2 of Board Circular No. 4/2004-Cus. The Tribunal concluded that the Commissioner (Appeals) erred in entertaining the exporter's request for a change in the incentive scheme post-export, as it amounted to material suppression of facts in the initial declaration. Therefore, the Tribunal set aside the order of the Commissioner (Appeals) and allowed the Revenue's appeal.

This judgment clarifies the restrictions on amending shipping bills post-export, emphasizing the importance of accurate initial declarations and compliance with the Customs Act and relevant circulars.