2016 (3) TMI 798 - AT - Customs

Conversion of Free Shipping Bills into Export Promotion Scheme/DEEC Shipping Bills - Appellant filed five DEEC declarations in the ICEGATE (EDI) for shipment of Human Rabies Vaccine in discharge of export obligation against said Advance Authorization No. 0910057931 but due to technical problems in the EDI system, export promotion shipping bills could not be generated for those consignments vide copies of screen shots which indicated No Record found for Licence No. (0910057931) . Their CHA could not obtain permission to file DEEC shipping bills manually. Therefore they were compelled to export five consignments which were already in the port under five Free Shipping Bills - Held that - when the facts on record especially the documents and declarations available at the time of export support the case of the appellant and when the fault lies with the EDI system of the Customs, the request of the appellant for conversion of Free Shipping Bills into DEEC/Export Promotion Scheme Shipping Bills is genuine and needs acceptance supported by CESTAT, Bangalore s decision in the case of Gennex Laboratories Ltd. Vs. CC, Hyderabad 2012 (11) TMI 997 - CESTAT, BANGALORE and CESTAT, Chennai s decision in Kiran Pondy Chems Ltd. Vs. CC, Chennai 2006 (5) TMI 36 - CESTAT, CHENNAI . - Decided in favour of appellant

Summary

Issues: Refusal of permission to convert Free Shipping Bills into Export Promotion Scheme Bills

Analysis:
1. Refusal of Permission: The case involves the refusal of permission to convert five Free Shipping Bills into Export Promotion Scheme Bills by the Deputy Commissioner Customs, Air Cargo Complex, Bangalore, citing Circular No. 36/2010-Customs dated 23.09.2010.

2. Appellant's Arguments: The appellant, a manufacturer of Human Rabies Vaccine, had successfully fulfilled export obligations under Advance Authorization Schemes but faced technical issues in generating DEEC shipping bills. Consequently, they exported goods under Free Shipping Bills and later sought conversion to DEEC Shipping Bills, which was denied by lower authorities.

3. Legal Provisions: The Revenue argued against conversion based on Circular No. 36/2010-Cus., which restricts such conversions. However, the Customs Act, 1962, under Section 149, allows amendments to shipping bills based on existing documentary evidence at the time of export.

4. Judicial Interpretation: The Tribunal found that the lower authorities erred in not allowing the conversion as per the provisions of Section 149 of the Customs Act. Citing precedents like Gennex Laboratories Ltd. and Kiran Pondy Chems Ltd., the Tribunal emphasized that when documents at the time of export support the conversion and technical faults hindered the process, the appellant's request is genuine and should be accepted.

5. Decision: The Tribunal allowed the appeal, directing the lower authorities to accept the appellant's request for conversion of Free Shipping Bills into DEEC/Export Promotion Scheme Shipping Bills without further delay. The judgment was pronounced on 03.02.2016.

This detailed analysis outlines the core issues, legal arguments, relevant provisions, judicial interpretation, and the final decision of the Appellate Tribunal CESTAT Bangalore in the case concerning the refusal of permission to convert Free Shipping Bills into Export Promotion Scheme Bills.