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2023 (3) TMI 78 - HC - CustomsConversion of shipping bills from Duty Drawback Scheme to DFIA Scheme - Export of goods under DIA Scheme as well as Duty Drawback scheme - whether the conversion of Drawback shipping bills can be allowed to DFIA Scheme or not? - HELD THAT - No error, not to speak of any error of law could be said to have been committed by the tribunal in passing the impugned order. Section 149 is applicable at the relevant point of time. In fact, the questions as proposed by the revenue cannot be termed as substantial questions of law as the issue is squarely covered by a decision of this Court in the case of INTER CONTINENTAL (INDIA) VERSUS UNION OF INDIA 2002 (2) TMI 129 - HIGH COURT OF GUJARAT AT AHMEDABAD and the same is also upheld by the Supreme Court in UNION OF INDIA OTHERS VERSUS INTER CONTINENTAL (INDIA) 2008 (4) TMI 23 - SUPREME COURT . The above mentioned judgment of Gujarat has attained finality as in the proposal for fling SLP before Hon ble the Supreme Court of India against order of High Court, it has been decided not to file SLP in this case (A-2). It has been observed in the letter that the products are covered under the above mentioned 126 shipping bills i.e Biscuits and Confectioneries, were notified under the SION norms. Thus, they were held to be eligible to claim the benefit of DFIA. Section 149 of the Customs Act, 1962 lays down that any import/export document may be considered for conversion subject to satisfaction of the proper officer without having any limitation. No time period is prescribed in Section 149 for conversion of bills and any policy providing for time period is ultra vires - appeal dismissed.
Issues:
- Appeal under Section 130 of the Customs Act, 1962 seeking setting aside of an order - Conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme - Consideration of time limitation for conversion - Application rejection based on Circular No. 36/2010-Cus - Legal entitlement for conversion of shipping bills - Applicability of Section 149 of the Customs Act, 1962 - Dismissal of appeal by Gujarat High Court Analysis: 1. The appeal was filed under Section 130 of the Customs Act, 1962, aiming to set aside an order dated 07.02.2019. The respondent, engaged in the manufacture of biscuits and cookies, exported goods under the Duty Drawback scheme. However, due to a notification declared ultra vires, the respondent sought conversion of exports to the DFIA Scheme, which was initially rejected by the Adjudicating Authority. 2. The Tribunal considered whether the conversion of Drawback shipping bills to the DFIA Scheme could be allowed. The Tribunal disposed of the appeal in favor of the Company, permitting the conversion subject to the reversal of benefits taken under the Duty Drawback scheme along with interest. 3. The High Court deliberated on the duty drawback paid back to the petitioner by the Revenue/Customs Department, emphasizing that the conversion application cannot be rejected based on limitation grounds. Reference was made to judgments by the Gujarat High Court in similar cases, establishing precedents followed by the Customs Department. 4. In a subsequent case before the Gujarat High Court, the Tribunal allowed the conversion of shipping bills from Drawback Scheme to DFIA Scheme, citing Section 149 of the Customs Act, 1962. The High Court dismissed the appeal of the revenue department, underscoring that no error of law was committed, and the issue was covered by established legal precedents. 5. The High Court further highlighted that Section 149 does not prescribe a time limit for conversion of bills, and any policy imposing a time period is considered ultra vires. The case of the respondent aligned with the judgment of the Gujarat High Court, leading to the dismissal of the appeal and upholding the order dated 07.02.2019. 6. Ultimately, the appeal was dismissed, affirming the legal entitlement for the conversion of shipping bills from the Duty Drawback Scheme to the DFIA Scheme, in line with the provisions of the Customs Act, 1962 and established judicial precedents.
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