2018 (8) TMI 1353 - HC - Customs

Conversion of Bills of Entry - Bills of Entry for Home Consumption to Bills of Entry for Warehousing - N/N. 79/2017-cus issued on 13.10.2017 - Held that - On 12.12.2017, the Central Board of Excise & Customs (CBEC) has issued instructions or a Circular with respect to the refund claims in respect of countervailing duties as drawback duties - the respondents are directed to proceed to consider whether the petitioners fulfil their export obligations, and pass appropriate orders, if necessary, at the earliest - petition disposed off.

Summary

Issues:
Challenge to order rejecting conversion of Bills of Entry, interpretation of Customs Act provisions, reliance on Supreme Court decision, application of notifications, assessment of goods, fulfillment of export obligations, consideration of refund claims, disposal of Writ Petitions.

Analysis:
The petitioners challenged an order rejecting the conversion of Bills of Entry for Home Consumption to Bills of Entry for Warehousing by the Customs Authorities. They sought directions to permit clearance of goods based on specific notifications. The petitioners relied on Section 18(1)(a) of the Customs Act, 1962 for the assessment of goods, and subsequent orders allowed the release of goods with an undertaking-cum-bond without payment of countervailing duties. The petitioners argued that Notification No.79/2017-cus applied to the imports in question based on a Supreme Court decision regarding the effective date of notifications.

In a related case, the court had dealt with similar issues concerning the levy of IGST in light of Circulars and Press Releases amending exemption notifications. The court granted interim relief based on relief measures announced by the GST Council, directing that the petitioner need not pay IGST for certain imports subject to conditions. The court emphasized the need for verification of export obligations and granted relief subject to further verification by Customs Department.

The court noted the extension of exemption notifications to IGST by the respondent on 13.10.2017, post the introduction of the GST regime. The petitioner held an advance license issued before the existence of exemption notifications, and the court directed verification of fulfillment of export obligations within a specified timeframe. The court disposed of the writ petition and directed the respondents to consider the fulfillment of export obligations promptly.

Furthermore, the Central Board of Excise & Customs issued instructions regarding refund claims for countervailing duties as drawback duties. The court directed the respondents to proceed with considering the petitioners' export obligations and issuing appropriate orders promptly, while keeping all rights and contentions of the parties open. Ultimately, the Writ Petitions and pending applications were disposed of, concluding the legal proceedings.