Conversion of advance licence shipping bills to DEPB denied after delay and absence of customs verification requirements.

Advance licence shipping bills could not be converted into DEPB Scheme shipping bills where the export was originally made under the Advance Licence Scheme, the licence was later cancelled at the exporter's request, and the conversion request was made after the time limit in the relevant Board Circular. DEPB benefit also depended on declaration and verification of standard input-output norms by customs authorities, which had not been completed. On these facts, conversion was held inadmissible and the order refusing conversion was upheld.

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Issues: Whether advance licence shipping bills could be converted to DEPB Scheme shipping bills after cancellation of the advance licence and after the period prescribed in the Board Circular.

Analysis: The export had been made under the Advance Licence Scheme and the advance licence obtained against those exports was later cancelled at the exporter's request. The request for conversion to the DEPB Scheme was made beyond the time limit prescribed in the Board Circular dated 6-1-2004. The DEPB benefit also required declaration and verification of standard input-output norms by the customs authorities, which had not been done in the present case.

Conclusion: The request for conversion was not admissible and the impugned order refusing conversion was upheld.

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