Shipping bill conversion denied where DEEC benefit was never refused by the competent authorities under the governing circular.

CESTAT Mumbai held that conversion of a shipping bill from the DEEC Scheme to the Drawback Scheme was not permissible because the governing CBEC Circular No. 04/2004-Cus allowed conversion only where DEEC benefit had been denied by the competent authorities. As the DEEC benefit had not been denied by DGFT, the Ministry of Commerce, or Customs, the prescribed condition precedent for conversion was not satisfied. The denial of conversion was therefore justified, and the appellant was not entitled to seek reclassification of the shipping bill from DEEC Scheme to Drawback Scheme.

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Issues: Whether the conversion of the shipping bill from DEEC Scheme to Drawback Scheme was permissible when benefit under the DEEC Scheme had not been denied by DGFT, the Ministry of Commerce, or Customs authorities.

Analysis: The governing CBEC Circular No. 04/2004-Cus dated 16.01.2004 permitted conversion only where benefit under the DEEC Scheme had been denied by the competent authorities. Since the appellant's DEEC benefit had not been denied, the condition precedent for conversion was not satisfied.

Conclusion: The denial of conversion was /justified and the appellant is not entitled to conversion of the shipping bill from DEEC Scheme to Drawback Scheme.

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