2015 (7) TMI 815 - AT - Customs

Whether amendment by a declaration of intent of claiming VKGUY scheme can be allowed on the free shipping bill under which goods already have been exported - Held that - Goods were exported during Aug. 2009 and Sep. 2009, whereas all these clarifications and amendments regarding declaration of intent of the export claiming VKGUY scheme was brought to the effect in Sep. 2009 and subsequently Nov. 2009 vide Circular No. 26/2009-Cus., dated 13-9-2009, 36/2010-Cus., dated 23-9-2010, DGFT Policy Circular No. 32(RE-2010) 2009-14, dated 3-6-2011, Public Notice No. 53(RE-2010)/2009-14, dated 3-6-2011, whereas the export of the appellant were taken place on Aug. 2009 and Sep. 2009. In these circumstances, non-declaration by the appellant of their intent to avail VKGUY scheme on the shipping bill is bona fide and amendment to that effect in the shipping bill is covered under the provision of Section 149 of Customs Act, 1962 Exporter was unaware of the formalities of advance licence and due to ignorance, the exporter failed to avail appropriate scheme. In the present case, VKGUY scheme was allowed on the free shipping bill without any declaration and requirement of declaration of free shipping bill .brought into effect. More or less on same time goods in the present case has been exported therefore, appellant was not aware of these circulars and amendments of Sep 2009. - request of the appellant seeking amendment in the free shipping bill is legitimate and covered by the provision of Section 149 of Customs Act, 1962. It is also to be noted that the Revenue has hot brought any material on record that the amendment sought for by the appellant will cause any loss to the Revenue or will prejudice the interest of the Revenue in any manner - order of the lower authority is set aside - Decided in favour of assessee.

Summary

Issues Involved:
1. Amendment of free shipping bills to include the declaration of intent to claim VKGUY scheme benefits.
2. Applicability of Section 149 of the Customs Act, 1962 for such amendments.
3. Compliance with Circulars and Public Notices regarding the declaration of intent for VKGUY scheme benefits.

Detailed Analysis:

1. Amendment of Free Shipping Bills:
The appellant sought to amend free shipping bills to include a declaration of intent to claim benefits under the VKGUY scheme. The original shipping bills were filed without this declaration, which became a mandatory requirement as per subsequent circulars and public notices. The appellant argued that the VKGUY scheme was in effect at the time of export, and the need for a declaration was introduced later. Therefore, the omission was unintentional.

2. Applicability of Section 149 of the Customs Act, 1962:
Section 149 allows amendments to shipping bills based on documentary evidence existing at the time of export. The appellant contended that all necessary information and documents were provided during export, and the amendment sought was merely to include the VKGUY declaration, which aligns with the existing documents. The Tribunal agreed, stating that the amendment is permissible under Section 149 as it is based on documents available at the time of export and does not alter the nature or value of the goods.

3. Compliance with Circulars and Public Notices:
The requirement for a declaration of intent to claim VKGUY benefits was introduced by Circular No. 26/2009-Cus., dated 13-9-2009, and subsequent notices. The Tribunal noted that the exports in question occurred before these requirements were communicated. Therefore, the appellant's failure to declare the intent was bona fide. The Tribunal referenced various circulars and notices, including Circular No. 36/2010-Cus., which allowed amendments to shipping bills and provided a grace period for compliance with new declaration requirements.

Conclusion:
The Tribunal concluded that the appellant's request for amendment was legitimate and covered by Section 149 of the Customs Act, 1962. It was noted that the amendment would not cause any loss or prejudice to the Revenue. The Tribunal set aside the lower authority's order and allowed the appeal, permitting the amendment of the shipping bills to include the VKGUY declaration.