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TMI Blog2014 (2) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... licences. The Commissioner of Customs, rejected the request as per order dated 23 January, 2006. The said order was challenged before the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as "CESTAT"). The CESTAT while remanding the matter, directed the Commissioner of Customs to verify the contemporaneous documents for the purpose of deciding the issue regarding conversion of shipping bills into DEEC shipping bills. 3. The issue was thereafter considered by the Commissioner of Customs on merits. The Commissioner of Customs opined that as there was delay in making the application for conversion, the Department was not in a position to verify as to whether the duty free imported goods were utilised in the export products or not. The question regarding the availability of contemporaneous documents in support of the claim made by the exporter was also considered by the Commissioner. The Commissioner found that the exporter was a well known manufacturer and the product under export is not a case of one isolated export. Therefore the issue has to be seen in the light of the fact that the exporter is a regular manufacturer of transformers and matching of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relying upon 2003 (156) E.L.T. 1021 (Kitply Industries Ltd. v. Commissioner of Customs) which is wholly inapplicable to the instant case? 3. Whether in the facts and circumstances of the case, the Hon'ble CESTAT was right in allowing the 1st respondent-Assessee's plea to convert free shipping bills into DEEC Shipping bills even though the 1st respondent had not discharged its export obligation and in the light of the ratio laid down by the CESTAT in 2005 (184) E.L.T. 39 (Man Industries Ltd. v. Commissioner of Customs, Mumbai) by which circulars in force during pendency of the application shall be considered? 4. Whether or not the Tribunal (CESTAT) was right in not appreciating the subsequent introduction of EDI (Electronic Data Interchange) System and treating it as one falling under proviso to Section 149? 5. Whether or not the CESTAT was right in holding that contemporaneous documents produced by the respondent tallied with exports made, especially when the Adjudicating authority held that there were several discrepancies and when such documentary evidence as contemplated under Section 149 are not anterior to exports made by the respondent in the instant cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the export product and stated that these exports were only towards fulfilment of Export Obligation. In my opinion, these documentary evidences have to be looked into in the background of the manufacturing activities of the exporter. The exporter is a well known manufacturer and the product under export is not a case of one isolated export. Besides, it is also noticed that under Licence No. 0210037730 and Shipping Bill No. 5285277, exported items are "Spares for transformers", whereas the Export Obligation products Bushing Spares 12 Nos. and Relay Spares 2 Nos. Similarly in respect of License No. 40805, there is no import of Spares as per the License and also there is no Export Obligation of Spares but the corresponding Shipping Bill No. 875 to 877 refers to Spares as exports products. In other words, there is no co-relation between the imported product and the export product. These facts have to be seen in the light of the fact that the exporter is a regular manufacturer of transformers and matching of some of the items appears more of s coincidence. 11. The Commissioner of Customs arrived at a factual finding that the exporter has not discharged the burden that the duty free ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f documents gives a clear indication that such amendments cannot be permitted as a matter of course. It is true that discretion is given to the authorities to permit amendment of documents after it has been presented in the customs house. However, no amendment can be made after the export, except on the basis of documentary evidence which was in existence at the time when the goods were exported. 17. There is a purpose in putting such onerous condition in the matter of amendment of documents after making exports. The conversion is not a matter of right. The idea is that such conversion should not result in availment of double benefits. Though the Section does not say that omission should be genuine, a reading of the provision gives a clear idea that it was not intended as a routine measure. Only in very exceptional cases, conversion would be permitted and that too, on production of contemporaneous documentary evidence. In case of abnormal delay in making such request for conversion, the Department would not be in a position to ascertain as to whether the duty free goods were utilised in the export product. It was only for the said purpose the Legislature has incorporated prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on thus : "51. Summarising the above discussion, this Court holds : "a. In India the judicial trend has always been to record reasons, even in administrative decisions, if such decisions affect anyone prejudicially. b. A quasi-judicial authority must, record reasons in support of its conclusions. c. Insistence on recording of reasons is meant to serve the wider principle of justice that justice must not only be done it must also appear to be done as well. d. Recording of reasons also operates as a valid restraint on any possible arbitrary exercise of judicial and quasi-judicial or even administrative power. e. Reasons reassure that discretion has been exercised by the decision maker on relevant grounds and by disregarding extraneous considerations. f. Reasons have virtually become as indispensable a component of a decision making process as observing principles of natural justice by judicial, quasi-judicial and even by administrative bodies. g. Reasons facilitate the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on law jurisdictions judgments play a vital role in setting up precedents for the future. Therefore, for development of law, requirement of giving reasons for the decision is of the essence and is virtually a part of "Due Process". 23. The learned counsel for the exporter submitted that the documents can be examined by this Court and a finding could be arrived at as to whether the documents are contemporaneous in nature. We are not inclined to verify the documents in the appeal filed by the Department. Those documents should have been considered by CESTAT in extenso. The present controversy has arisen only on account of the failure of CESTAT to indicate the details of documents and its link and the contemporaneous nature in the order under appeal. Therefore we are of the view that the Tribunal was not justified in allowing the appeal without any kind of indication about the details of contemporaneous documents. 24. The remaining issue is as to whether we should remit the matter to CESTAT for fresh consideration. 25. Even according to the exporter, only few documents were submitted before the Commissioner of Customs. The so called voluminous documents were produced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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