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TMI Blog2024 (4) TMI 1045X X X X Extracts X X X X X X X X Extracts X X X X ..... lls to drawback shipping bills cannot be accepted for more than one reason - Firstly, it changes the entire nature of the Shipping Bills and it is not merely amendments to them - Secondly, any amendment can be permitted only on the basis of documents available at the time of export. The appellant s prayer that the rates notified much later may be applied to it s case retrospectively cannot be accepted because the notified All-Industry Rates are always prospective and also because these rates had not existed when the goods were exported - Thirdly, any amendment under section 149 is a matter of discretion of the officer and not a right of the exporter. Considering the long period that lapsed between exports (1998) and the request for conversion (2007), the Commissioner was correct in not allowing the conversion. The impugned order is upheld - Appeal dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed between May 1998 to December 1998 and the application for their conversion to drawback shipping bills was submitted on 11.6.2007 which was rejected by the Commissioner. (ii) Free shipping bills and drawback shipping bills are two different types of shipping bills and are subject to different levels of scrutiny. In free shipping bills, since no export incentive is claimed, the processing is much faster and the exported goods are subject to much lighter controls. On the other hand, if an incentive like drawback of some export promotion scheme is claimed, such shipping bills are subject to a much greater level of scrutiny. (iii) Drawback is available in three forms- (a) as per All Industry Rates; (b) as per brand rates; and (c) as per special brand rates. All Industry Rates are notified for most commonly exported goods by the government from time to time depending on the average proportion of value of different inputs and input services which go into the manufacture of the final product which is exported, the rates of Customs duties on such inputs if they are imported, the rates of excise duties on such inputs if they are domestically manufactured and the rates of service tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng bill or bill of export shall be so authorised to be amended after the imported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be. 9. The free shipping bills in question pertain to 1998 and the request for conversion was made in 2007. Although the request was made in terms of section 149 of the Act, as per the interpretation of this section by Delhi High Court in Terra Films and Madras High Court in Suzlon Energy, conversion of shipping bill from one scheme to another is not an amendment because it changes the entire nature of the document. Paragraph 6 of Terra Films is reproduced below: 6. As per proviso of this Section 149, no amendment of a shipping bill was to be allowed after the export goods have been exported except on the basis of the documentary evidence, which was in existence at the time the goods were exported. The submission of the learned counsel for the appellant/exporter in this regard was that the exporter was in possession of all the documents at the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Officer to permit amendment in any document after the same has been presented in the Customs house has to be though exercised judicially, it was qualified with the proviso that the amendment could be allowed only if it was based on the documentary evidence in existence at the time the goods were exported. It is further observed therein that the request was made for conversion from one Scheme to another is a case of request for conversion and not of an amendment inasmuch as by converting from one Scheme to another, it was not only addition of certain word, but change of entire status and character of the documents. Thus, the Delhi High Court observed that the Proper Officer may not be in a possession of the documents sought to be amended particularly, when the goods already stood exported. For enabling an exporter to draw the benefits of any scheme, not only physical verification of documents would be required, but also verification of the goods of export and their examination by the Customs was necessarily required to be done. By observing so, the Delhi High Court upheld the rejection of the request of the exporter seeking for conversion of the Shipping Bill from one Scheme to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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