2011 (1) TMI 1310 - AT - Customs

Summary

Issues:
1. Conversion of DEPB shipping bills into free shipping bills.
2. Rejection of the conversion request by the Commissioner.
3. Examination of goods under DEPB scheme.
4. Applicability of DEPB rates for filled cushions.

Analysis:
1. The appellant initially filed DEPB shipping bills for the export of made-ups. However, upon the officer's intimation that the item was not covered under the specified DEPB heading, the appellant converted these bills into free shipping bills with permission granted by the proper officer.

2. The appellant informed the Commissioner that the shipments were being converted under protest, seeking clarification from the DGFT. The Commissioner rejected the request for conversion based on a Board Circular, noting that the appellant's uncertainty was evident from their communication with the DGFT post-shipment. The Commissioner also highlighted that the goods were deemed ineligible for the DEPB scheme during examination, leading to the conversion to duty-free shipping bills.

3. The Tribunal disagreed with the Commissioner's reasoning, citing correspondence indicating that the goods were not covered under the DEPB scheme as noted by examining officers. The conversion to free shipping bills was not at the exporter's request but at the Revenue's behest. Referring to legal precedent, the Tribunal allowed the conversion of free shipping bills back to DEPB shipping bills.

4. The Tribunal directed the lower authorities to examine the appellant's DEPB claim in light of the DGFT clarification, emphasizing that the conversion was warranted based on the circumstances and the misclassification of goods under the DEPB scheme. The judgment concluded by allowing the conversion of free shipping bills to DEPB shipping bills, ensuring a proper assessment of the DEPB claim moving forward.