2023 (11) TMI 1137 - AT - Customs

Conversion of Free Shipping Bills to Drawback Shipping Bills - Period of limitation - Monetary limit involved in the appeal - HELD THAT - The Review Committee has put forward grounds challenging the Final order passed by the Tribunal dt. 30.09.2021 directing the adjudicating authority to verify and allow the conversion of shipping bills. When the order passed by the department denying the request for conversion has been set aside by the final order dt. 30.09.2021 passed by Tribunal, the only remedy available for the department is to file an appeal against such order before the Higher Forum. The Tribunal while passing the Final order has already taken into consideration the Board s circular as well as the decisions passed on the very same issue. The Commissioner has correctly followed the direction of the Tribunal and passed the impugned order - there are no grounds to interfere with the impugned order. Same is sustained. Monetary limit involved in the appeal - HELD THAT - On perusal of records, it is seen that the matter does not involve any duty, penalty or fine, or confiscation of goods and it falls below Rs.50 lakhs and therefore falls under the new Litigation Policy with regard to Customs cases to be filed before the Tribunal. The appeal falls within the monetary limits of litigation policy. Appeal filed by Revenue dismissed.

Summary

Issues involved: Appeal against conversion of shipping bills from free to drawback shipping bills within a specified period, adherence to Customs Act provisions and CBEC Circulars, jurisdiction of the Tribunal and the High Court in challenging orders.

Summary:

Issue 1: Conversion of shipping bills
The appeal was filed by the Department challenging the conversion of free shipping bills to drawback shipping bills within a specific period as allowed by the Tribunal. The respondent had requested for this conversion for exports made between 2013-14 to 2016-17. The Tribunal directed the adjudicating authority to verify and allow the conversion of shipping bills falling within three years from the date of application. The Department contended that the conversion was not permitted under Section 149 of the Customs Act, 1962 and CBEC Circular No.36/2010. The Commissioner was supposed to examine the request within three months from the Let Export Order (LEO) as per CBEC Circular No.6/2002. The Department argued that the examination norms were not followed, and the appeal should be allowed.

Issue 2: Jurisdiction to challenge orders
The Department challenged the final order of the Tribunal dated 30.09.2021, which directed the adjudicating authority to verify and allow the conversion of shipping bills. The respondent argued that the Department should have appealed to the High Court against the Tribunal's final order instead of challenging the Principal Commissioner's decision. The respondent emphasized that the Commissioner correctly followed the Tribunal's direction, and the appeal should be dismissed.

Judgment:
The Tribunal found that the Department's appeal was challenging the Tribunal's final order, and the appropriate remedy would have been to appeal to the High Court. Since the Tribunal had already considered relevant circulars and decisions, and the Commissioner had correctly followed the Tribunal's direction, the appeal was dismissed. The Tribunal noted that the matter fell within the new Litigation Policy for Customs cases due to the absence of duty, penalty, fine, or confiscation of goods, and the appeal was within the monetary limits of the policy. The appeal filed by the Department was therefore dismissed.