Drawback on packing material requires clear linkage between purchased bags and bags actually used in export consignments.

Conversion of free shipping bills into drawback shipping bills was refused because the exporter failed to establish a reliable correlation between the packing material purchased and the packing material actually used in the exported goods. The export documents described Maida packed in PP bags, while the purchase invoices referred to HDPE woven bags or PP/HDPE woven bags purchased by number, not by weight. As drawback on packing material is weight-based, the absence of clear evidence identifying the nature and weight of the material used made the claim unworkable. The appeal therefore failed.

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Issues: Whether free shipping bills could be converted into drawback shipping bills in the absence of reliable correlation between the packing material purchased and the packing material used in the exported goods.

Analysis: The request for conversion depended on establishing that the packing material for which drawback was claimed was in fact used in the export consignments. The export documents described the goods as Maida packed in PP bags, but the purchase invoices described the bags as HDPE woven bags or PP/HDPE woven bags, and the bags were purchased by number rather than by weight. The export documents did not show that the bags used were woven bags or HDPE bags, and no satisfactory linkage was produced between the purchased material and the export consignments. Since drawback on packing material is weight-based, the inability to ascertain the nature and weight of the material used made the claim unworkable.

Conclusion: Conversion of the free shipping bills into drawback shipping bills was rightly refused, and the appeal failed.

Ratio Decidendi: A drawback claim based on packing material cannot be allowed unless the exporter establishes a clear and reliable correlation between the purchased packing material and the packing material actually used in the export goods.

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