Tribunal allows conversion of shipping bill scheme, Circular applied retrospectively

The tribunal ruled in favor of the appellants, allowing the conversion of the shipping bill from the Advance Licence Scheme to the DEPB Scheme. It held that Circular No. 36/2010-Cus. should be applied retrospectively, emphasizing that there is no time limitation for amendments under Section 149 of the Customs Act, 1962, as long as the required documentary evidence existed at the time of export. The case was remanded to the adjudicating authority for verification of documents and compliance with the Customs Act.

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Issues Involved:
1. Conversion of Shipping Bill from Advance Licence Scheme to DEPB Scheme.
2. Applicability of Circular No. 36/2010-Cus., dated 23.09.2010.
3. Time limitation for amendment under Section 149 of the Customs Act, 1962.
4. Requirement of documentary evidence for amendment.

Detailed Analysis:

1. Conversion of Shipping Bill from Advance Licence Scheme to DEPB Scheme:
The appellants sought to convert Shipping Bill No. 3780220, dated 11.06.2010, from Advance Licence Scheme to DEPB Scheme, claiming that the shipping bill was wrongly filed under the Advance Licence Scheme due to miscommunication from their customer. They argued that the export under the said Advance Licence had already been discharged in May 2009, and thus, the conversion request should be allowed under Board's Circular No. 36/2010-Cus., dated 23.09.2010. The adjudicating authority denied the conversion, stating that the circular was not applicable as the shipping bill was filed before the issuance of the circular and the request was time-barred.

2. Applicability of Circular No. 36/2010-Cus., dated 23.09.2010:
The appellants contended that Circular No. 36/2010-Cus., dated 23.09.2010, which allows conversion of shipping bills from one scheme to another, should be applied retrospectively. They cited the case of ESTOCORP India P. Ltd. Vs Union of India, where it was held that beneficial circulars should be applied retrospectively. The tribunal noted that the circular aimed to liberalize the conversion process and should be applicable to the present case.

3. Time Limitation for Amendment under Section 149 of the Customs Act, 1962:
The adjudicating authority rejected the conversion request on the grounds of time limitation, as the request was made more than one year after the filing of the shipping bill. However, the tribunal observed that Section 149 of the Customs Act, 1962, does not prescribe any time limit for amendments. The only requirement is that the documentary evidence supporting the amendment should have existed at the time of export. The tribunal distinguished this case from the Terra Films Pvt. Ltd. case, where physical examination of goods was necessary, and upheld that the time limit mentioned in the circular was not applicable to the present case.

4. Requirement of Documentary Evidence for Amendment:
The adjudicating authority also denied the amendment due to the lack of documentary evidence furnished by the exporter. The tribunal remanded the case back to the adjudicating authority to examine the documents presented by the appellants. It was emphasized that if the documents supporting the amendment were available at the time of filing the shipping bills, the appellants should be allowed to convert the shipping bills from Advance Licence Scheme to DEPB Scheme as per Section 149 of the Customs Act, 1962.

Conclusion:
The tribunal concluded that the appellants are entitled to the conversion of the shipping bill from Advance Licence Scheme to DEPB Scheme. The matter was remanded back to the adjudicating authority to verify the documentary evidence and ensure compliance with Section 149 of the Customs Act, 1962. The appeal was disposed of with these directions.

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