2011 (2) TMI 612 - AT - Customs

Conversion of the Free Shipping Bill to Drawback Shipping Bill - Appellants have submitted that due to inadvertence and oversight they did not submit the Drawback Shipping Bill - However, they have put forth several documentary evidences for justifying their claim of drawback which find have not been considered by the lower authority - While not permitting conversion of the Free Shipping Bill to Drawback Shipping Bill is perfectly justified, the case of the appellants for grant of drawback needs to be considered on the basis of other documents and evidences produced by them for deciding as to whether the drawback can be sanctioned or not - Accordingly, while upholding the impugned order of rejection of the request for conversion of the Free Shipping Bill to Drawback Shipping Bill, the matter is remanded to the original authority for considering the claim of drawback made by the appellants

Summary

Issues: Conversion of Free Shipping Bill to Drawback Shipping Bill, Consideration of Drawback Claim

Conversion of Free Shipping Bill to Drawback Shipping Bill:
The appellants filed a Free Shipping Bill and sought conversion to a Drawback Shipping Bill. The Circular No. 4/2004-Cus., dated 16-1-2004, clarified that no provision exists for such conversion under the relevant Customs, Central Excise Duties, and Service Tax Drawback Rules, 1995. The refusal by the lower authority for conversion was deemed justified. However, the circular also mentioned that individual requests for grant of drawback at the all industry rate could be considered by the Commissioner based on merits and facts. The appellants claimed inadvertence in not submitting the Drawback Shipping Bill and provided documentary evidence to support their claim, which was not considered by the lower authority. The Tribunal upheld the rejection of the conversion request but remanded the matter to the original authority to consider the drawback claim based on the additional documents and evidence presented by the appellants. The appellants were to be given a fair hearing before a fresh decision was made.

Consideration of Drawback Claim:
While the conversion request was denied, the Tribunal emphasized that the claim for drawback needed to be evaluated based on the documents and evidence submitted by the appellants. The original authority was directed to review the claim for drawback in light of the new evidence and provide the appellants with a proper opportunity to present their case before issuing a fresh decision. The Tribunal partially allowed the appeal by remanding the matter for reconsideration of the drawback claim, ensuring a fair process for the appellants.