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of <h1>EOU wins right to convert shipping bills pre-No Dues Cert into drawback bills</h1> The Tribunal ruled in favor of the appellant, a 100% EOU, allowing the conversion of all shipping bills, including those filed before the issuance of the ... 100% EOU - conversion of shipping bills - rejection of shipping bills filed prior to the issuance of ‘No Dues Certificate’ - denial on the ground that ‘No Dues Certificate’ was not issued by the Revenue - whether the balance shipping bills filed prior to the issuance of ‘No Dues Certificate’ can be converted into draw back shipping bills or not? - Held that: - the appellant having completed formality for exiting out of 100% EOU status on 26.9.2007 itself, was entitled to the benefit of DTA unit, irrespective of non-issuance of the ‘No Dues Certificate’. The issuance of said certificate is only an extension of the event of the appellant having became a non-100% EOU. As soon as they have discharged their discharged certificate from EOU scheme, they became entitled to the benefit of DTA unit for claim of draw back irrespective of time taken by the Revenue for issuance of the certificate. The adjudicating authority has already extended benefit of conversion of free shipping bills into draw back shipping bills for the period subsequent to issuance of ‘No Dues Certificate’ and there is no dispute about the appellants right to do so, we hold that he would be entitled to such benefit for the previous period also - the Commissioner to examine the appellants claim vis-à-vis various shipping bills from the date of discharging their full duty liability from which date the appellants would be considered as a DTA unit - appeal allowed by way of remand. Issues: Conversion of free shipping bills to draw back shipping bills prior to issuance of 'No Dues Certificate'Analysis:1. The appellant, a 100% EOU, sought permission to exit the scheme and paid the duty on capital goods under the prevalent EPCG scheme as directed by the Development Commissioner. The appellant applied for a 'No Dues Certificate' after discharging full duty liability, which was issued on 03.12.2007, followed by the final de-bonding order on 9.1.2008.2. The appellant filed 70 exports under free shipping bills between 26.9.2007 and 9.1.2008, seeking conversion to draw back shipping bills for exports made during this period. The adjudicating authority allowed the conversion of only 31 shipping bills filed after the 'No Dues Certificate' issuance, denying the conversion for bills filed earlier due to the absence of the certificate.3. The main issue was whether the balance shipping bills filed before the 'No Dues Certificate' issuance could be converted into draw back shipping bills. The Tribunal noted the delay in issuing the certificate by the Revenue, which should not prejudice the appellant's right to claim the benefit as a DTA unit.4. The Tribunal held that the 'No Dues Certificate' should relate back to the date of application or final payment of duty, as observed in previous cases. The delay in issuing the certificate, solely in the hands of the authorities, should not affect the appellant's entitlement to the benefit as a DTA unit.5. Consequently, the Tribunal set aside the impugned order and directed the Commissioner to examine the appellant's claim for conversion of shipping bills from the date of discharging full duty liability, considering the appellant as a DTA unit from that date onwards.6. The Tribunal emphasized that the delay in issuing the 'No Dues Certificate' should not impact the appellant's right to claim benefits, and the certificate should be considered effective from the date of application or final duty payment, ensuring the appellant's entitlement to conversion of shipping bills for the entire period in question.7. The appeal was disposed of in favor of the appellant, granting them the right to convert all shipping bills, including those filed before the issuance of the 'No Dues Certificate,' into draw back shipping bills, considering the appellant as a DTA unit from the date of discharging full duty liability.
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