9911796707
|
Home
Issues:
Conversion of drawback shipping bill to DFRC scheme. Analysis: The appeal pertains to the conversion of a drawback shipping bill initially filed by the appellants for exporting tractors to Zimbabwe and South Africa in January 2003 to the DFRC scheme. The Commissioner of Customs rejected the conversion request on the grounds that the appellants were not compelled to file the free shipping bill under the drawback scheme, thus not meeting the conditions specified in Circular No. 6/2003-Cus., dated 28-1-2003. Upon review, it was found that the appellants are tractor manufacturers who exported goods under the drawback scheme in January 2003. Their request for drawback was declined as they had availed Modvat credit on inputs used in manufacturing the goods. Subsequently, they applied for the conversion of shipping bills from drawback to DFRC scheme, citing the provisions of the Board's Circular. The Circular allows conversion in cases where exporters were denied benefits under a particular scheme, which was the scenario for the appellants. Despite the Commissioner's reliance on one clause of the Circular, the Tribunal noted that the appellants were entitled to seek DFRC scheme benefits as their goods met the required norms and they provided a Chartered Engineer's Certificate to support their claim. The Tribunal referred to a previous case where a similar conversion was allowed under comparable circumstances, reinforcing the appellants' eligibility for the conversion. Considering the above arguments and the provisions of the Circular, the Tribunal set aside the Commissioner's order and allowed the appeal, granting any consequential relief as per the law. In conclusion, the Tribunal's decision favored the appellants, emphasizing their entitlement to convert the shipping bills from the drawback scheme to the DFRC scheme based on the applicable Circular and supporting documentation, overturning the Commissioner's rejection and providing relief in line with legal provisions.
|
