Tribunal allows appeal for converting shipping bills, emphasizing the importance of documentary evidence

The Tribunal allowed the appeal filed by M/s. Sologuard Medical Devices Pvt. Ltd., directing the Commissioner to convert the free shipping bills into DEEC shipping bills within two months. Despite Circular No. 4/04 debarring such conversion, the Tribunal held that if the exporter can provide documentary evidence existing at the time of shipments, conversion should be allowed to avail incentives granted by the Government. The Tribunal emphasized the significance of documentary evidence for allowing such conversions under Section 149 of the Customs Act, disregarding Circular restrictions.

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Issues:
1. Conversion of free shipping bills into DEEC shipping bills under CBEC Circular No. 4/04.
2. Applicability of Section 149 of the Customs Act for amending shipping bills.
3. Documentary evidence required for amendment under Section 149.

Analysis:

1. Conversion of free shipping bills into DEEC shipping bills under CBEC Circular No. 4/04:
The appeal was filed by M/s. Sologuard Medical Devices Pvt. Ltd. against the rejection of their request to convert free shipping bills into DEEC shipping bills. The exports of disposable syringes with needles were made under free shipping bills, and the request for conversion was denied as it did not comply with the DEEC scheme procedure. The Tribunal considered the appellant's possession of advance licenses, no objection certificates from JDGFT, and the conditions for conversion under the Circular in force at the time of exports. Despite Circular No. 4/04 debarring such conversion, the Tribunal held that if the exporter can provide documentary evidence existing at the time of shipments, conversion should be allowed to avail incentives granted by the Government.

2. Applicability of Section 149 of the Customs Act for amending shipping bills:
The appellant argued that they were entitled to the conversion under Section 149 of the Customs Act, citing a Tribunal decision in a similar case. Section 149 allows for amendments based on documentary evidence existing at the time of export. The Tribunal agreed with the appellant's counsel that denial of conversion by CBEC overlooked the provisions of Section 149. It emphasized that if exporters can satisfy authorities with documentary evidence at the time of shipments, the department is obligated to allow the conversion under Section 149, disregarding Circular restrictions.

3. Documentary evidence required for amendment under Section 149:
The Tribunal clarified that conversion under Section 149 should be supported by documentary evidence existing at the time of export. In this case, the appellants had manufactured and cleared the export goods after examination by Central Excise Officers, possessed advance licenses for consignments, and obtained no objection from JDGFT. The Tribunal stressed that exporters must provide documentary evidence to demonstrate compliance with conditions for conversion laid down in relevant Circulars and statutory provisions. The decision highlighted the significance of documentary evidence for allowing amendments under Section 149.

In conclusion, the Tribunal allowed the appeal, directing the Commissioner to convert the free shipping bills into DEEC shipping bills within two months, considering the exporter's efforts since 2004 and the statutory provisions under Section 149 of the Customs Act.

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