2015 (2) TMI 509 - AT - Customs

Conversion of free shipping bills - whether case involving conversion of free shipping bill to drawback shipping bill can be heard by Single Member Bench or Division Bench - Held that - disputed cases other than cases involved determination of question having relation to the rate of duty of Custom or value of the goods for the purpose of assessment is in the issue and if the amount does not exceed 50 lakhs, should be heard by Single Member Bench. - conversion of free shipping bills to drawback shipping bills does not involve any issue either of rate of duty or value of goods and it does not involve any quantum of drawback. Therefore, there is no doubt that the present case falls under clause (b) of sub-section of Section 129C and should be heard by a Single Member Bench. From the provisions of Section 129 C (4) and also view taken by the various coordinate single member benches, I am of the view that the present case which involves only conversion of free shipping bill to drawback shipping bills can be heard by Single Member Bench. Since coordinate bench in the case - 2014 (11) TMI 857 - CESTAT MUMBAI Midex Global Pvt. Ltd. Vs. Commissioner of Customs, Pune has taken different view that this nature of cases should be heard by Division Bench and not by Single Member Bench, I direct the registry to place this matter before the Hon ble President for constituting a larger bench to decide the issue whether case involved conversion of free shipping bills to drawback shipping bills can be heard by the Single Member Bench or by Division Bench .

Summary

Issues involved:
- Whether free shipping bills can be allowed to be converted into drawback shipping bills.
- Whether the case involving conversion of free shipping bill to drawback shipping bill should be heard by a Single Member Bench or a Division Bench.

Analysis:
- The appeal was against an Order-in-Appeal where the Order-in-Original was sustained, and the appellant's appeal was dismissed. The main issue was the conversion of free shipping bills to drawback shipping bills.
- The Deputy Commissioner raised a preliminary objection, citing a judgment that such cases should be heard by a Division Bench.
- The appellant argued that the issue only involved the conversion and not the rate or quantum of drawback, citing relevant judgments.
- The Tribunal considered the submissions and disagreed with the previous judgment, citing the provisions of Section 129C (4) of the Customs Act, which allows Single Member Benches for cases not involving duty rates or value of goods.
- The Tribunal noted that similar issues had been decided by Single Member Benches in the past, supporting the view that this case falls under the jurisdiction of a Single Member Bench.
- Due to conflicting views, the Tribunal directed the matter to be placed before the President to constitute a larger bench to decide whether such cases should be heard by a Single Member Bench or a Division Bench.