2008 (3) TMI 198 - AT - Customs

Appellant exported under free Shipping Bill - appellant had imported raw material under Advance Licence - noticing the error, that they have not recorded this export under the advance licence, they filed an application for conversion of free shipping bill to advance licence shipping bill impugned mistake has arisen due to the reason that the appellant was not aware of the formalities, hence conversion of free shipping bill into advance license shipping bill is allowed

Summary

Issues involved:
Conversion of free shipping bill to advance licence shipping bill under Customs Act, 1962 based on Board's Circular No. 4/2004, applicability of Section 149 of Customs Act, 1962 for conversion, Tribunal's authority over Board's Circular, mistake in recording export under advance licence, Tribunal's previous judgments on similar issues.

Analysis:
The appellant exported Metallic Expansion Bellows without recording it under the advance licence, leading to the rejection of their application for conversion of free shipping bill to advance licence shipping bill. The main issue revolved around the applicability of Board's Circular No. 4/2004, with the appellant arguing that the circular is not binding on the Tribunal. The Tribunal referred to a previous case where it held in favor of the assessee, emphasizing that the Board's Circular does not mention any statutory bar for denying conversion claimed by exporters.

The Tribunal considered the provisions of Section 149 of the Customs Act, 1962, stating that conversion of the shipping bill is permissible under this section. It highlighted the importance of not denying export incentives to promote exports, as seen in the case of Nucleus Satellite Communications Pvt. Ltd. The Tribunal also referenced another case involving free shipping bill conversion, where the High Court dismissed the revenue's appeal, supporting the conversion under Section 149.

Based on the precedents and interpretations of the Customs Act, the Tribunal concluded that the issue of conversion of free shipping bill into an advance licence is covered in favor of the appellant. Consequently, the impugned order was set aside, and the appeal was allowed. The matter was remanded back for the specific purpose of converting the shipping bill from free shipping to advance licence shipping bill, in line with the Tribunal's decision and the High Court's ruling.

This detailed analysis of the judgment showcases the Tribunal's interpretation of relevant legal provisions, the significance of previous cases, and the ultimate decision in favor of the appellant regarding the conversion of the shipping bill under the Customs Act, 1962.