2017 (6) TMI 1013 - AT - Customs

Conversion of shipping bills - free shipping bills into DEPB shipping bills - Held that - the goods in question were exported by the appellant and same were sealed at the factory in the presence of jurisdictional Central Excise authorities and duly certified by the said authorities - the condition of receipt of foreign inward remittance certificate in respect of payment in support of exportation of goods has also not been disputed by the jurisdictional Commissioner of Customs - in terms of Circular dated 16.1.2004, he should have examined the case on merits and thereafter to order conversion of free shipping bills into draw back shipping bills (All Industry Rates). Since power conferred in Circular No.4/2004 has not been exercised by the Commissioneris, the matter should go back to the Commissioner of Customs for re-consideration of the request of appellant for conversion of free shipping bills into draw back shipping bills (All Industry Rates) - appeal allowed by way of remand.

Summary

Issues:
Conversion of free shipping bills into DEPB shipping bills and drawback shipping bills at All Industry Rates.

Analysis:
The appeal was filed against the rejection of the request for conversion of free shipping bills into DEPB shipping bills by the Commissioner of Customs. The appellant exported forged machine parts and filed free shipping bills instead of DEPB benefits. The appellant later requested the conversion of shipping bills, but the Commissioner denied the request. The Commissioner's decision was based on the lack of evidence indicating the intention to avail DEPB benefits at the time of export, as required by Section 149 of the Customs Act. The appellant argued that the Commissioner should have considered converting the bills into drawback shipping bills at All Industry Rates, citing Circular No.4/2004. The Tribunal found that the goods were exported under proper supervision and that the Commissioner should have examined the case on merits before rejecting the conversion request. As the power conferred in Circular No.4/2004 was not exercised, the matter was remanded back to the Commissioner for re-consideration. The Tribunal emphasized granting a personal hearing and expected a decision within three months for justice.

In conclusion, the Tribunal set aside the impugned order and remanded the matter to the Commissioner for necessary orders regarding the conversion of free shipping bills. The appellant was directed to cooperate in the re-adjudication process. The Tribunal highlighted the importance of a timely decision and the opportunity for a personal hearing. The appeal was disposed of with these directions for further proceedings.