2013 (4) TMI 443 - AT - Customs

Conversion of shipping bill - Advance Licence Scheme to DEPB scheme - Board s Circular No. 04/2004-Cus allow shipping bill to be treated as a bill under DEPB scheme when thare is a denial of export promotion scheme by DGFT/Ministry of Commerce or by Customs authority give rise to disputed export - Held that - It appears that the instructions of the Board through circular No. 04/2004 contingent events are permitted to be considered by the authority for conversion of the shipping bill. One of such contingency being denial of export promotion scheme by DGFT/Ministry of Commerce or by Customs authority give rise to disputed export. However, conversion is permitted on case to case basis subject to fulfilment of five cumulative conditions prescribed by circular. Thus, matter is remanded to the Adjudicating Authority.

Summary

Issues: Dispute regarding export under DEPB scheme, conversion of shipping bills from Advance Licence Scheme to DEPB scheme, interpretation of Section 149 of the Customs Act, 1962, applicability of Board's Circular No. 04/2004-Cus, conditions for conversion of shipping bill.

The judgment addresses a dispute where the appellant's export under the DEPB scheme was denied by Customs authorities due to shipping bills indicating export under the Advance Licence Scheme. The appellant's consultant argued that the rejection of the DEPB application by DGFT led to the inability to prepare shipping bills under the DEPB scheme initially, seeking recourse under Board's Circular No. 04/2004-Cus. The respondent contended that export under a specific scheme cannot be converted into another scheme as per Section 149 of the Customs Act, 1962. The Tribunal examined Section 149 and the circular, noting that Customs authorities have discretion to amend shipping bills based on justifications and compliance with circular instructions. The Tribunal found that the rejection by DGFT constituted denial of the export scheme governance to the appellant, falling within the circular's provisions for conversion on fulfilling five cumulative conditions. The appellant agreed to cooperate to demonstrate compliance with these conditions for a favorable order.

The judgment remands the matter to the Adjudicating Authority for a fair hearing to resolve the dispute, emphasizing the need for the appellant to fulfill the conditions outlined in the circular for the conversion of shipping bills. The decision highlights the importance of adherence to procedural requirements and conditions specified by the circular for converting shipping bills between export schemes, ensuring a transparent and compliant resolution of export-related disputes.