Shipping bill conversion cannot be denied by circular-based time limits when no statutory limit existed during the relevant period.

In the absence of any statutory time limit under the Customs Act, 1962 during the relevant period, a Board circular could not be used to deny conversion of shipping bills from Advance Authorisation to duty drawback merely because the let export order was issued after three months. The refusal was held unsustainable, and the request for conversion was directed to be considered and granted on remand, with consequential benefits.

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Issues: Whether conversion of shipping bills from Advance Authorization Scheme to duty drawback scheme could be denied on the basis of the time limit prescribed in the Board circular when no statutory time limit was in force during the relevant period.

Analysis: The dispute concerned refusal to convert 2178 shipping bills on the ground that the let export order was issued beyond three months. During the relevant period, the Customs Act, 1962 did not prescribe any time limit for such conversion. A Board circular could not be used to impose a limitation where the statute did not provide one. The earlier Tribunal decision on a similar conversion issue, followed by the High Court's refusal to interfere, supported the view that the circular-based time restriction could not defeat the claim for conversion.

Conclusion: The rejection of conversion was unsustainable. The request for conversion of the shipping bills was directed to be considered and granted by remand, with consequential benefits.

Ratio Decidendi: In the absence of a statutory time limit, an administrative circular cannot be relied upon to refuse conversion of shipping bills.

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