Amendment of shipping bills to DFIA permitted where drawback benefit was not availed; circular-based delay cannot override statutory power.

Where drawback benefit had not been sanctioned, export promotion shipping bills could be amended to DFIA shipping bills under the Handbook of Procedures and Section 149 of the Customs Act, 1962. The absence of availed benefit and the existence of export documents at the time of export supported conversion, and a circular-based time limit could not defeat the statutory power to amend shipping bills. Delay alone was therefore not a valid basis to refuse conversion, and the rejection was unsustainable.

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Issues: (i) whether drawback shipping bills could be converted to DFIA shipping bills when the drawback benefit had not been sanctioned, and (ii) whether the request for conversion could be rejected on the ground of delay beyond the time mentioned in the Board circular.

Issue (i): whether drawback shipping bills could be converted to DFIA shipping bills when the drawback benefit had not been sanctioned.

Analysis: Paragraph 2.56 of the Handbook of Procedures permits conversion of an export promotion shipping bill to another scheme where the benefit of the original scheme has not been availed. The record showed that the drawback claim had not been sanctioned. The Court also noted that both drawback and DFIA are export promotion schemes and that the relevant export documents and examination had already existed at the time of export.

Conclusion: The conversion was permissible and the rejection was unsustainable.

Issue (ii): whether the request for conversion could be rejected on the ground of delay beyond the time mentioned in the Board circular.

Analysis: Section 149 of the Customs Act, 1962 does not prescribe any statutory time limit for amendment of shipping bills. The time prescription in Board's Circular No. 36/2010-Cus was treated as not overriding the statutory power where the export promotion benefit had not been availed and the factual matrix otherwise supported conversion. The Court distinguished the cases relied on by the Revenue on the basis of their facts.

Conclusion: The delay by itself was not a valid ground to refuse conversion.

Final Conclusion: The impugned order was set aside and the lower authorities were directed to convert the drawback shipping bills to DFIA shipping bills.

Ratio Decidendi: Where the benefit of the originally claimed export promotion scheme has not been availed, shipping bills may be amended to another eligible export promotion scheme under Section 149 of the Customs Act, 1962, and a circular-based time limit cannot defeat that statutory power absent a legal bar.

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