2023 (11) TMI 835 - AT - Customs

Denial of request for conversion of free shipping bills to drawback shipping bills - denial on the ground of non-declaration of entitlement of drawback on the shipping bill - HELD THAT - Section 149 of the Customs Act, 1962, deals with the situation and clearly permits the amendment of shipping bill on the basis of documentary evidence which was in existence at the time of export of goods. Admittedly, there is no examination of documents is placed on record by adjudicating authority while considering the claim for conversion of free shipping bills to drawback shipping bills. Admittedly, in this case, no document has been examined and drawback claim has been rejected without any observations. Therefore, we set aside the impugned order and hold that in terms of Section 149 of the Customs Act, 1962, the appellant is entitled for conversion of free shipping bills to drawback shipping bills subject to verification of the documents, which were available at the time of export. Matter remanded back to the adjudicating authority to examine the documents and thereafter to allow the conversion of free shipping bills to drawback shipping bills by keeping all others issues open - appeal allowed by way of remand.

Summary

Issues:
The appeal against the denial of conversion of free shipping bills to drawback shipping bills.

Details:
The appellant, a Public Sector Undertaking engaged in manufacturing and trading of petroleum products, exported LPG to Nepal under ex-bond shipping bills instead of drawback shipping bills due to inadvertent mistake. The appellant applied for conversion of free shipping bills to drawback shipping bills, which was denied by the adjudicating authority.

The appellant's advocate argued that Section 149 of the Customs Act, 1962, allows amendment of shipping bills based on existing documentary evidence at the time of export. The advocate cited a previous Tribunal order in support of the contention.

It was further argued that the non-declaration of drawback entitlement on the shipping bill was a procedural lapse and should not result in denial of substantive benefit. The Circular No. 4/2004-Cus was deemed to exceed the powers granted under the Act and Drawback Rules.

The Revenue's representative opposed the appellant's contentions, citing a relevant decision to support the applicability of Circular No. 4/2004-Cus.

After hearing both parties, the Tribunal found that Section 149 of the Customs Act allows for amendment of shipping bills based on existing documentary evidence. Since no documents were examined by the adjudicating authority, the impugned order was set aside. The Tribunal held that the appellant is entitled to convert free shipping bills to drawback shipping bills, subject to document verification.

The matter was remanded back to the adjudicating authority for document examination and conversion of shipping bills, with all other issues left open. The appeal was allowed by way of remand.