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2016 (12) TMI 199 - AT - Customs


Issues:
Request for conversion of free shipping bills to drawback shipping bills rejected by the Commissioner of Customs based on specific grounds.

Analysis:
The issue in dispute pertains to the rejection of the appellant's request for the conversion of 189 free shipping bills to drawback shipping bills. Initially, a Single Member Bench of the Tribunal had held that the appellant, being a manufacturer-exporter, is entitled to avail drawback. The matter was remanded for de novo consideration. In the subsequent proceedings, the Commissioner of Customs rejected the conversion request citing various reasons, including the absence of a declaration for drawback under Drawback Rules, 1995, and the timing of the request, which was made more than a year after the Let Export Order. The lower authority also noted that the exporter did not intend to apply for drawback at the time of export and that the filing of free shipping bills was not due to inadvertent error. The matter was brought before the Tribunal for appeal.

The appellant's counsel argued that there is no limitation period for conversion requests and cited relevant court decisions supporting the conversion of shipping bills. On the other hand, the Revenue contended that conversion cannot be allowed without satisfying the documentary evidence requirements under Section 149 of the Customs Act, 1962. The Revenue emphasized that the examination norms for free shipping bills are less rigorous and conversion should be based on strict criteria.

The Tribunal analyzed the circular issued by the Board, which clarified the norms for conversion of shipping bills. The circular allowed conversion from schemes involving different levels of examination but prohibited the conversion of free shipping bills into export promotion scheme shipping bills. It also permitted the allowance of duty drawback on goods exported under free shipping bills without conversion. The Tribunal noted that the lower authority had only considered the conversion issue and not the alternative option of duty drawback. Consequently, the Tribunal remanded the matter to the Adjudicating Authority for re-examination in light of the circular guidelines. The Authority was directed to provide a reasonable opportunity to the appellant, ensure a timely decision within three months, and pass a reasoned order.

In conclusion, the Tribunal remanded the appeal to the Adjudicating Authority for further consideration in accordance with the Circular No. 36/2010-Cus. The Authority was instructed to consider the alternative option of duty drawback and provide a fair opportunity for the appellant to present their case within a specified timeframe.

 

 

 

 

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