Conversion of shipping bills under Section 149 allowed where goods were examined and exported in sealed containers despite contrary circular

Free shipping bills could be converted into DEEC scheme shipping bills under Section 149 of the Customs Act because the goods had been examined at the factory and exported in sealed containers, leaving no scope for misdeclaration or misuse of export benefits. The Tribunal noted that the departmental circular relied on to conversion had already been held contrary to Section 149, so the request for conversion was admissible and the Commissioner was directed to allow it on remand.

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Issues: Whether free shipping bills could be converted into DEEC scheme shipping bills under Section 149 of the Customs Act, 1962 despite the departmental circular prohibiting such conversion.

Analysis: The request for conversion was rejected by relying on Board's Circular No. 4/2004 dated 16.01.2004. The Tribunal noted that the circular had already been held to be contrary to Section 149 in an earlier decision and that the goods had been examined at the factory and exported in sealed containers, leaving no scope for misdeclaration or misuse of export benefits.

Conclusion: The request for conversion was held to be admissible and the Commissioner was directed to allow it on remand.

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