2018 (6) TMI 597 - AT - Customs

Disputed Cotton Export: Denial Reversed, Reexamination Ordered

The appellant exported cotton linter under duty free shipping bills. The Commissioner initially doubted the goods' identity but later confirmed they were ... Conversion of free shipping bills into drawback shipping bills - rejection on the ground that the assessee has not given the details on the shipping bills as regards the description, quantity and such other particulars as are required for claiming the drawback - appellant case is that the required details are already available in the said shipping bill. If that be so, the appellant request for conversion should not have been denied in view of the settled law - Held that:- matter remanded to the adjudicating authority for examination of the appellant claim for availability of all the requisite details in the shipping bills itself and to redecide the issue based upon the verification of the said fact - appeal allowed by way of remand. Issues:1. Export of cotton linter under duty free shipping bills.2. Request for conversion of free shipping bills into drawback shipping bills.3. Denial of request based on lack of declaration on shipping bills.Analysis:1. The appellant exported cotton linter under 17 duty free shipping bills during November 2009 under the Vishes Krishi and Gram Udyog Yojna scheme. The Revenue initially kept the assessment provisional due to doubts about the goods' identity. The Assessing Officer later finalized the assessment, determining that the goods were not cotton linter. However, the Commissioner (Appeals) ruled in favor of the assessee, confirming that the goods were indeed cotton linter.2. Subsequently, the appellant sought to convert the free shipping bills into drawback shipping bills, but the Commissioner rejected this request. The adjudicating authority's reasoning for the denial was that the appellant did not provide the necessary details on the shipping bills for claiming the drawback. The appellant argued that the required details were already present on the shipping bills and cited relevant legal precedents supporting their position.3. The adjudicating authority's objection centered on the appellant's failure to include all the required details on the shipping bills as per Rule 12(1)(a) of the Customs and Central Excise Duties Drawback Rules, 1995. The appellant contended that the details were indeed provided and pointed to a Board Circular and legal cases where similar requests for conversion were allowed. The Tribunal and the Supreme Court decisions highlighted by the appellant supported the conversion of free shipping bills into drawback shipping bills, subject to fulfilling the requirements of Rule 12(1)(a) and demonstrating that the reasons for any shortcomings were beyond the appellant's control.In conclusion, the Member (Judicial) found merit in the appellant's arguments and set aside the impugned order. The matter was remanded to the adjudicating authority for a reexamination of the appellant's claim regarding the availability of all necessary details on the shipping bills. The decision to allow the conversion of free shipping bills into drawback shipping bills would depend on verifying the presence of the required information on the shipping documents. The appeal was allowed by way of remand, emphasizing the importance of compliance with the relevant rules and providing the essential particulars on the shipping bills for claiming drawbacks.