2013 (12) TMI 1193 - AT - Customs

Rejection of request of the exporters for conversion of Free Shipping Bills into DEPB Shipping Bills - Held that - jurisdictional Commissioner has rejected the request of the appellants for conversion of free shipping bills to DEPB shipping bills stating that DGFT Public Notice dated 21-8-1998 was not in existence at the time of export of goods. It is rather obvious that the public notice dated 21-8-1998 was not in existence earlier and hence the public notice specifically states that it retrospectively covers shipments earlier made from 1-4-1997 to 14-4-1998. This public notice has been issued by the DGFT in the public interest consciously allowing DEPB benefit to the exporters retrospectively. If conversion is not allowed on the hyper-technical ground that public notice was not in existence at the time of shipment, the very purpose of the public notice issued conveying Government s decision for grant of a retrospective benefit would be defeated as in no case of any exporter, conditions sought to be satisfied by the jurisdictional Commissioner could be fulfilled. That would be detrimental to the public interest which has been specifically invoked while issuing the relevant public notice dated 21-8-1998 - Decided in favour of assessee.

Summary

Issues:
Conversion of Free Shipping Bills into DEPB Shipping Bills based on retrospective Public Notice dated 21-8-1998.

Analysis:
The Tribunal had previously remanded the matter to the jurisdictional Commissioner of Customs for rejecting the conversion request of exporters for Free Shipping Bills into DEPB Shipping Bills. The Commissioner's rejection was based on the absence of the DGFT Public Notice dated 21-8-1998 at the time of export of goods. The Tribunal noted that the said public notice covered exports retrospectively from 1-4-1997 to 14-4-1998, allowing DEPB benefit to exporters. The Tribunal emphasized that the retrospective nature of the public notice was crucial in granting benefits to exporters. Denying conversion based on technicalities would defeat the purpose of the public notice and be against public interest. Therefore, the Tribunal set aside the Commissioner's order and directed the authorities to allow the conversion of shipping bills as per Section 149 of the Customs Act, emphasizing the importance of the retrospective nature of the public notice in benefitting exporters.

This judgment highlights the significance of considering public notices retrospectively to grant benefits to exporters. It underscores the importance of not being overly technical in such matters, especially when public interest is involved. The decision emphasizes the need to interpret and apply regulations in a manner that upholds the spirit of the law and serves the interests of the public and the parties involved. The ruling sets a precedent for allowing conversions based on retrospective public notices to ensure fairness and justice in trade-related matters.