2019 (11) TMI 1338 - AT - Customs

Conversion of shipping bills - conversion of bills from Advance Authorization scheme to duty drawback scheme - HELD THAT - During the relevant period there was no provision under the Customs Act, 1962 prescribing the time limit for conversion of the shipping bill - Further, in the case of GLOBAL CALCIUM PRIVATE LTD. VERSUS COMMISSIONER OF CUSTOMS 2016 (12) TMI 199 - CESTAT CHENNAI , the request of the assessee was for conversion of the free shipping bills to drawback shipping bills. The Tribunal after considering the submissions observed that the time limit specified in the above circular cannot be applied to deny the request for conversion of the free shipping bills to drawback shipping bills. In the present case, it is for conversion from Advance Authorization scheme to duty drawback scheme - the request for conversion of the shipping bill cannot be disallowed by pressing into the application of time limit prescribed by the Board in its circular dated 23.9.2010. The appeal is allowed by way of remand to the original authority for conversion of the shipping bills from Advance Authorization Scheme to duty drawback scheme with consequential benefits if any.

Summary

Issues:
Conversion of shipping bills from Advance Authorization Scheme to duty drawback scheme.

Analysis:
The case involved the conversion of shipping bills from the Advance Authorization Scheme to the duty drawback scheme. M/s. Indian Oil Corporation sought permission to convert shipping bills due to the withdrawal of customs duty on crude oil. The original authority allowed conversion of only 1687 shipping bills, leading to an appeal before the Tribunal. The Commissioner disallowed conversion of 2178 shipping bills citing a three-month time limit for let export orders. The appellant argued that no time limit was prescribed by law during the relevant period, referencing a Tribunal decision in Global Calcium Pvt. Ltd. case. The appellant contended that the Board Circular limiting time cannot deny conversion. The Commissioner relied on the Board Circular for disallowing conversion, while the appellant emphasized the absence of a time limit in the relevant provisions.

The Tribunal analyzed the dispute regarding the rejection of conversion requests for 2178 shipping bills. It noted that during the relevant period, the Customs Act did not prescribe a time limit for conversion. Referring to the Global Calcium Pvt. Ltd. case, where a similar issue was considered, the Tribunal emphasized that the time limit specified in the circular cannot be used to deny conversion. The High Court also observed that the time limit provision would not apply based on the Tribunal's decision. The Tribunal clarified that the conversion in this case was from Advance Authorization to duty drawback scheme, not free to drawback shipping bills. Considering the precedents and lack of a time limit provision, the Tribunal set aside the Commissioner's order and remanded the case for conversion of shipping bills with consequential benefits, if any.

In conclusion, the Tribunal allowed the appeal by remanding the matter to the original authority for the conversion of shipping bills from the Advance Authorization Scheme to the duty drawback scheme. The decision was based on the absence of a time limit provision in the relevant law and the precedent set by previous Tribunal and High Court judgments.