2011 (1) TMI 711 - AT - Customs

Conversion of shipping bills from ZERO duty EPCG scheme to ZERO duty and drawback scheme - Dual benefit - Held that - It is undisputed that the respondent had claimed the drawback of the goods exported under the category of All Industry Drawback rate . It is also undisputed that the respondent had imported capital goods under the EPCG scheme. - Conversion of shipping bill allowed - Revenue in the grounds of appeal has not rebutted the finding that the assessee is entitled for benefit of Zero duty EPCG and drawback scheme or all industry drawback rate, and there is no reason or provisions to prohibit such availment of the benefit by the assessee.

Summary

Issues:
Conversion of shipping bills from "Zero duty EPCG scheme" to "Zero duty EPCG and drawback scheme".

Analysis:
The appeal before the Appellate Tribunal CESTAT, Bangalore involved the conversion of shipping bills from "Zero duty EPCG scheme" to "Zero duty EPCG and drawback scheme." The respondent had initially filed shipping bills under the "Zero duty EPCG scheme" for export obligations. Subsequently, they sought to convert these bills to avail benefits under the "Zero duty EPCG and drawback scheme." The lower authorities disallowed this conversion, leading to the appeal. The Tribunal had earlier remanded the matter for de-novo decision, resulting in the current impugned order being the de-novo adjudication order.

The main issue in this case was whether the Adjudicating Authority correctly allowed the conversion of shipping bills from "Zero duty EPCG scheme" to "Zero duty EPCG and drawback scheme." The Adjudicating Authority permitted the conversion based on relevant circulars and previous Tribunal decisions. The Commissioner's findings highlighted the similarities with a previous case regarding conversion of shipping bills for DEPB benefits. The Adjudicating Authority noted that the exporter's request for conversion fulfilled the conditions laid down in the CBEC Circular, such as the request being made within one month of export and no misuse of benefits. Consequently, the Adjudicating Authority allowed the conversion of the shipping bills.

Upon considering the submissions and records, the Tribunal found that the Revenue had not provided any rebuttal to the factual findings supporting the conversion of shipping bills by the Adjudicating Authority. The Tribunal concluded that the respondent was entitled to the benefits under the "Zero duty EPCG and drawback scheme" or the all industry drawback rate. As there was no legal basis to prohibit the respondent from availing these benefits, the Tribunal upheld the impugned order, deeming it correct, legal, and free from any infirmity. Consequently, the appeal by the Revenue was rejected, and the cross-objection was also disposed of.