2015 (12) TMI 1639 - AT - Customs

Conversion of free shipping bill to DEPB scheme shipping bill - denial on the ground of time bar - the request for conversion has been filed around 8 months after filing of Export General Manifest - Held that - The appellant has sought amendment of document (shipping bill) u/s 149 of the Customs Act, 1962. When the appellant has satisfied the requirements of the proviso under Section 149, the Commissioner ought to have allowed the request for conversion instead of disallowing the same by applying the Board s Circular No. 4/2004. It is also to be stated that Section 149 does not lay down any time limit for seeking amendment of the documents - Though the appellants omitted to declare the DEPB benefit on the shipping bill, they have clearly declared the same in the ARE-1 forms in respect of the said shipping bill. Therefore there was sufficient documentary evidence available at the time of export indicating that the appellants were eligible to avail the DEPB benefit - the rejection of the request for conversion of shipping bills is unjustified - appeal allowed - decided in favor of appellant.

Summary

Issues:
Request for conversion of free shipping bill to DEPB scheme shipping bill.

Analysis:
The appellants, manufacturers of Calcined Alumina, exported goods under concessional duty EPCG scheme with DEPB benefit. Due to a clerical error, a shipping bill was filed as a free shipping bill instead of a DEPB scheme shipping bill. The request for conversion was rejected, leading to appeals and subsequent legal proceedings. The Commissioner (Appeals) remanded the matter for fresh adjudication, which was upheld by the Tribunal. The High Court directed independent decision-making by the adjudicating Commissioner. The Order-in-Original dated 9-10-2012 rejected the conversion request citing reasons like being time-barred, absence of intention to claim DEPB benefit, and Board's Circular disallowing such conversion.

The appellant argued that the omission of DEPB details on the shipping bill was a clerical error, as evidenced by declarations in other documents. The eligibility for DEPB benefit was established through ARE1 forms, despite the omission in the shipping bill. Section 149 of the Customs Act allows for amendments based on existing documentary evidence at the time of export. The appellant cited relevant case laws supporting their position.

The respondent reiterated the rejection grounds based on the Board's Circular disallowing conversion after a certain period and questioning the appellant's intention to claim DEPB benefit. The Tribunal analyzed the case, emphasizing the availability of documentary evidence supporting the appellant's eligibility for DEPB benefit despite the clerical error on the shipping bill. The Tribunal referred to previous judgments where conversion requests under Section 149 were allowed, emphasizing the statutory right to seek document amendments. The rejection of the conversion request was deemed unjustified, and the impugned order was set aside, allowing the appeal with consequential relief.

In conclusion, the Tribunal's decision favored the appellant, highlighting the importance of documentary evidence, statutory rights under Section 149 of the Customs Act, and relevant case laws supporting conversion requests in similar circumstances.