2018 (2) TMI 654 - AT - Customs

Late document submission leads to denial of scheme conversion appeal, highlighting importance of timely compliance

The appellant's request to convert shipments from a drawback scheme to a DEEC scheme after more than five years was denied due to failure to provide ... Amendment in shipping bills - conversion of shipping bills under drawback scheme into DEEC scheme - Held that: - Only when proper documents claiming DEEC benefits are filed at the time of export that facilitates to scrutiny by Customs. But due to failure of the appellant to file such documents at the time of export, amendment of the shipping bills under Section 149 of the Customs Act, 1962 became difficult without good reason stated by appellant. The appellant has no right to cause prejudice to other side by a belated claim. Appeal dismissed. Issues:1. Request for amendment of shipping bills from drawback scheme to DEEC scheme after more than five years of export.2. Interpretation and application of Section 149 of the Customs Act, 1962 regarding amendment of documents.3. Consideration of the appellant's failure to provide proper documents at the time of export for claiming DEEC benefits.Analysis:Issue 1: The appellant exported goods under a drawback scheme but later sought to convert the shipments into the Duty Entitlement Pass Book (DEEC) scheme after more than five years. The Customs Act, 1962, specifically Section 149, allows for the amendment of documents under certain conditions. However, the appellant's delay in filing proper documents for DEEC benefits at the time of export made it challenging for Customs to consider the requested amendment. The appellant failed to provide a valid reason for the delay, which is essential for seeking such amendments. The judgment highlights the importance of timely and valid documentation submission for claiming benefits under different schemes.Issue 2: Section 149 of the Customs Act, 1962, provides the proper officer with discretionary power to authorize the amendment of documents like shipping bills. However, this authorization is subject to specific conditions, including the existence of documentary evidence at the time of clearance or export. In this case, the appellant's failure to fulfill the conditions laid down in Section 149, such as providing necessary documents at the time of export, hindered the possibility of amending the shipping bills to avail DEEC benefits. The judgment emphasizes the importance of complying with statutory requirements for seeking document amendments under the Customs Act.Issue 3: The judgment underscores the significance of diligence and timely action in seeking legal remedies. It points out that while the amendment of shipping bills is at the discretion of the authority, the claimant must present valid reasons and supporting evidence without unreasonable delay. In this case, the appellant's failure to demonstrate the availability of DEEC benefits at the time of shipment through proper documentation led to the dismissal of the appeal. The judgment highlights that a vigilant approach is necessary to avoid causing prejudice to other parties and to seek relief under the law promptly and with valid reasons.In conclusion, the judgment emphasizes the importance of adherence to statutory provisions, timely submission of necessary documents, and valid reasons for seeking document amendments under the Customs Act. It underscores the need for diligence and proactive action on the part of claimants to avail benefits under different schemes and to avoid prejudice to other parties due to delayed claims or inadequate documentation.