Tribunal allows appeal to convert shipping bills, circular time limits cannot override statutory provisions. Commissioner directed to revalidate DFIA licenses.

The Tribunal allowed the appeal, holding that the Appellant was legally entitled to convert 184 shipping bills to DFIA bills under Section 149 of the Customs Act 1962. The rejection based on the circular's time limit was deemed unjustified, emphasizing that circular time limits cannot override statutory provisions. The Commissioner was directed to issue the necessary certificate for revalidating the DFIA licenses. The impugned order was set aside, and consequential reliefs were granted in accordance with the law. The decision was rendered on 04.02.2020 by the members of the Appellate Tribunal CESTAT Ahmedabad.

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Issues:
1. Conversion of shipping bills from Drawback scheme to Duty Free Import Authorization (DFIA) Scheme.
2. Time limit for conversion as per Board Circular No. 36/2010-Cus.
3. Legal entitlement for conversion under Section 149 of the Customs Act 1962.

Analysis:
1. Conversion of Shipping Bills:
The appeal was filed against the rejection of the Appellant's request to convert 204 shipping bills from Drawback scheme to DFIA scheme due to a delay in submission. The Appellant argued that the time limit prescribed in Board Circular No. 36/2010-Cus is procedural and not a statutory requirement under Section 149 of the Customs Act 1962. The Appellant offered to deposit the drawback amount along with interest, ensuring no prejudice to the revenue. Previous judgments were cited where conversion was allowed despite delays.

2. Time Limit for Conversion:
The Authorized Representative for the revenue emphasized the violation of the time limit specified in the Board Circular, citing the Gujarat High Court judgment supporting the rejection of the conversion request. However, the Tribunal noted that Section 149 of the Customs Act 1962 does not prescribe a time limit for such conversions. It was established that circular time limits cannot override statutory provisions. The Tribunal highlighted that previous decisions supported conversion even in cases of delayed requests.

3. Legal Entitlement under Section 149:
The Tribunal analyzed Section 149 of the Customs Act 1962, which allows amendments to documents without a specified time limit. It was concluded that the rejection based solely on the circular's time limit was unjustified. Relying on previous judgments and statutory provisions, the Tribunal held that the Appellant was legally entitled to convert 184 shipping bills to DFIA bills. The Commissioner was directed to issue the necessary certificate for revalidating the DFIA licenses.

In conclusion, the Tribunal set aside the impugned order, allowing the appeal and granting consequential reliefs in accordance with the law. The decision was pronounced on 04.02.2020 by the members of the Appellate Tribunal CESTAT Ahmedabad.

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