Tribunal permits conversion of shipping bills, cites High Court ruling, Circular, and Customs Act provisions

The Tribunal allowed the appeal, permitting the conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme for the appellant. This decision was based on the declaration of Notification No. 31/2013 as ultra vires by the Punjab and Haryana High Court, allowing the appellant to convert under specific conditions and subject to the reversal of benefits received under the Duty Drawback Scheme. The Tribunal also considered the applicability of CBEC Circular No. 36/2010 and interpreted the relevant notifications and Customs Act provisions in favor of the appellant, ultimately ruling in their favor.

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Issues:
- Conversion of exports under Duty Drawback Scheme to Duty Free Import Authorisation (DFIA) Scheme.
- Applicability of CBEC Circular No. 36/2010 dated 23.09.2010.
- Interpretation of Notification No. 31/2013 dated 01.08.2013.
- Validity of the application for conversion under Section 149 of the Customs Act, 1962.
- Comparison of conditions between DFIA Scheme and Duty Drawback Scheme for conversion of shipping bills.

Analysis:

1. Conversion of exports under Duty Drawback Scheme to DFIA Scheme:
The appellant exported goods under Duty Drawback Scheme due to restrictions under Notification No. 31/2013 dated 01.08.2013, which was later declared ultra vires by the Punjab and Haryana High Court. The appellant sought conversion to DFIA Scheme, which was initially rejected by the adjudicating authority. The Tribunal held that the appellant is entitled to convert the shipping bills from Duty Drawback Scheme to DFIA Scheme as per the decision of the High Court, subject to the reversal of benefits taken under Duty Drawback Scheme.

2. Applicability of CBEC Circular No. 36/2010 dated 23.09.2010:
The appellant argued that the Circular does not bar the conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme and that the time limit specified in the Circular is not applicable. The Tribunal considered this argument and allowed the conversion based on the specific circumstances of the case.

3. Interpretation of Notification No. 31/2013 dated 01.08.2013:
The Notification required inputs used in manufacturing export products to be imported under authorization, which led the appellant to export under Duty Drawback Scheme initially. The Tribunal noted that the High Court's decision rendered the appellant eligible to file shipping bills under DFIA Scheme, which was not permitted at the time of export.

4. Validity of the application under Section 149 of the Customs Act, 1962:
The respondent contended that the appellant's application under Section 149 of the Customs Act was not applicable as there was no apparent mistake on record. However, the Tribunal found that the appellant's situation, where they were compelled to use Duty Drawback Scheme at the time of export, distinguished this case from the precedent cited by the respondent.

5. Comparison of conditions between DFIA Scheme and Duty Drawback Scheme:
The Tribunal compared the conditions for export under DFIA Scheme and Duty Drawback Scheme, noting that they were similar in this case. Citing previous judgments, the Tribunal held that the appellant met the criteria for conversion to DFIA Scheme and ordered the conversion, subject to the appellant paying back benefits received under Duty Drawback Scheme with interest.

Therefore, the Tribunal allowed the appeal and disposed of the case in favor of the appellant, permitting the conversion of shipping bills from Duty Drawback Scheme to DFIA Scheme, subject to the specified conditions.

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