Conversion of EOU Shipping Bills for drawback allowed where export goods remain otherwise eligible and the scheme permits simultaneous benefit.

Exporters may seek conversion of EOU Shipping Bills into drawback Shipping Bills where the goods are otherwise eligible for drawback and the governing scheme does not bar simultaneous benefit. The Tribunal's reasoning, following its earlier view, was that drawback cannot be refused merely because the original Shipping Bills were filed under the EOU scheme and omitted a drawback declaration. It also noted the relevance of CBEC circulars supporting drawback eligibility. On that basis, conversion was permitted, the impugned order was set aside, and consequential relief followed.

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Issues: Whether the exporter was entitled to conversion of EOU Shipping Bills into drawback Shipping Bills and to claim All Industry Rate of Drawback in respect of the export goods.

Analysis: The dispute turned on whether drawback could be denied merely because the Shipping Bills were originally filed under the EOU scheme and did not contain the drawback declaration. The Tribunal followed its earlier decision on the same legal question and held that, where the exports were otherwise eligible and the scheme did not prohibit simultaneous drawback, the exporter could seek conversion of the Shipping Bills. The Tribunal also noted the relevance of the CBEC circulars relied upon in support of drawback eligibility.

Conclusion: The issue was decided in favour of the appellant, and conversion of the Shipping Bills for grant of drawback was permitted.

Final Conclusion: The impugned order was set aside and the appeal succeeded with consequential relief as per law.

Ratio Decidendi: An exporter is entitled to seek conversion of eligible export Shipping Bills for drawback where the governing scheme does not bar simultaneous drawback and the export is otherwise entitled to such benefit.

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