2023 (12) TMI 576 - AT - Customs

Denial of conversion of shipping bills under Advance Authorization scheme to Duty Drawback scheme for realization of export benefits - time limitation specified under Section 149 of the Customs Act or not - HELD THAT - The Hon ble Gujarat High Court in MESSRS MAHALAXMI RUBTECH LTD. VERSUS UNION OF INDIA 2021 (3) TMI 240 - GUJARAT HIGH COURT has considered Section 149 ibid. in extenso and therefore, the Tribunal, as a lower authority, is bound by the said decision since the very Circular, which has been relied upon by the original authority even in the case on hand, has been clearly struck down by the Hon ble High Court as ultra vires. Hence, the views expressed by the original authority for denying the conversion request of the appellant, not subscribed. The impugned order is set aside - the appeal is allowed.

Summary

Issues Involved: Denial of conversion of shipping bills under Advance Authorization scheme to Duty Drawback scheme for realization of export benefits.

Summary:

Issue 1: Denial of Conversion Request
The appeal was filed against the denial of conversion of shipping bills under Advance Authorization scheme to Duty Drawback scheme for export benefits. The appellant contended that due to the withdrawal of customs duty on crude oil, they sought conversion to Duty Drawback scheme. The Commissioner of Customs denied the request citing a time limitation based on a Board Circular. The appellant argued that there was no time limitation specified under Section 149 of the Customs Act. The Tribunal noted the decision of the Hon'ble Gujarat High Court declaring the Circular as ultra vires Section 149 and dismissed the special leave petition by the Hon'ble Supreme Court. It was held that the denial of conversion was not in order as the Circular was invalidated, and Section 149 did not prescribe any time limitation for such requests.

Decision:
The impugned order denying the conversion request was set aside, and the appeal was allowed.