Conversion of EPCG shipping bills to include duty drawback upheld where circular conditions and export documents supported eligibility.

Shipping bills filed under the Zero Duty EPCG scheme were considered eligible for conversion into shipping bills under the Zero Duty EPCG and duty drawback scheme where the export documents and the exporter's claim supported drawback eligibility. The adjudicating authority found that the conditions in CBEC Circular No. 4/2004-Cus governing conversion between export promotion schemes were satisfied, and that capital goods had also been imported under EPCG. Revenue did not effectively rebut those factual findings or establish any prohibition against granting drawback in the circumstances. The conversion was therefore treated as valid and the Revenue's objection failed.

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Issues: Whether shipping bills filed under the Zero Duty EPCG scheme could be converted to shipping bills under the Zero Duty EPCG and duty drawback scheme.

Analysis: The conversion was sought on the basis that the export documents and the exporter's claim reflected eligibility for drawback, while capital goods had also been imported under the EPCG scheme. The adjudicating authority found that the conditions in CBEC Circular No. 4/2004-Cus dated 16.01.2004 governing conversion of shipping bills from one export promotion scheme to another were satisfied. The Revenue did not effectively rebut those factual findings or show any prohibition against allowing drawback in the circumstances of the case.

Conclusion: The conversion was held to be valid and the Revenue's challenge failed.

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