2019 (1) TMI 1672 - AT - Customs

Denial of request for conversion of shipping bills - conversion of shipping bills filed under the Duty Exemption Entitlement Certificate (DEEC) scheme in the Foreign Trade Policy notified under Foreign Trade (Development and Regulation) Act, 1992, to shipping bills entitled to claim for drawback - HELD THAT - The authority concerned must be satisfied that the conditions contingent upon which the privilege is claimable at the time of export should have been fulfilled in entirety at the time of export and this is to be evidenced by the record of examination in the shipping bills - The appellant in this case has been unable to do so as clearly noted by the competent authority in the impugned order. There are no reason to interfere with the denial of conversion ordered by the adjudicating authority - appeal dismissed.

Summary

Issues:
1. Denial of conversion of shipping bills from DEEC scheme to drawback entitlement.

Analysis:
The appeal pertains to the denial of conversion of shipping bills filed under the Duty Exemption Entitlement Certificate (DEEC) scheme to shipping bills entitled to claim drawback. The issue revolves around the entitlement of an exporter to convert shipping bills for goods exported under one scheme to another scheme. The DEEC scheme grants exemption from custom duties on imported material for goods to be exported, while drawback is a mechanism under the Customs Act for reimbursing duties borne by exporters on goods sent abroad. The Customs Act allows for the amendment of documents under certain conditions, and circulars issued by the Central Board of Excise and Customs provide guidelines for exercising discretion in such cases.

The absence of the appellant during the hearing led the Tribunal to proceed with the case based on the submissions of the Learned Authorised Representative. The Representative relied on previous Tribunal decisions and a High Court decision to support the principle that conditions for claiming privileges must be fulfilled entirely at the time of export, as evidenced by the record of examination in the shipping bills. In this case, the competent authority noted that the appellant failed to fulfill these conditions, leading to the denial of conversion. Consequently, the Tribunal found no grounds to interfere with the denial and dismissed the appeal.

In conclusion, the Tribunal upheld the denial of conversion of shipping bills from the DEEC scheme to drawback entitlement due to the appellant's failure to satisfy the conditions required for such conversion at the time of export. The decision was based on established principles, previous judgments, and the lack of evidence supporting the appellant's claim.