Conversion of free shipping bills requires proof of scheme compliance and export documentation; belated request was rejected.

Conversion of free shipping bills into advance licence, DEPB, DFRC or drawback shipping bills was permitted only on merits in individual cases where export documents established use of inputs in the exported product, the export was duly verified, and the exporter satisfied the scheme conditions. As the exporter produced no evidence of compliance and sought conversion after about three years, no basis existed for interference. The conversion was therefore not allowed and the Commissioner's order was sustained.

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Issues: Whether the conversion of free shipping bills into advance licence, DEPB, DFRC or drawback shipping bills was justified.

Analysis: The conversion was sought on the strength of the Board's circulars permitting such conversion on merits in individual cases, subject to proof from export documents that the inputs were used in the resultant export product, that the export was duly established by examination reports and endorsements, and that the exporter satisfied all conditions and eligibility requirements of the relevant scheme. The appellant did not produce documents or evidence showing fulfilment of these conditions, and the request was made after about three years. In the absence of the required proof, no case was made out for interference.

Conclusion: The conversion was not allowed and the Commissioner's order was sustained.

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