Tribunal allows appeal for shipping bill conversion, citing Circular No. 36/2010 and absence of time limit.

The Tribunal allowed the appellant's appeal for the conversion of shipping bills from the Drawback Scheme to the DEPB Scheme, overturning the decision based on an outdated circular. The Tribunal emphasized the applicability of Circular No. 36/2010 allowing such conversions and highlighted the absence of a time limit under Section 149 of the Customs Act, 1962 for such conversions.

---

---

Issues:
The appeal involves the rejection of the appellant's request for conversion of shipping bills from one scheme to another by the Ld. Commissioner (Appeals) based on Circular No. 04/2004 dated 16.01.2004, despite the issuance of a new Circular No. 36/2010 dated 23.09.2010 allowing such conversion.

Facts:
The appellant, engaged in the manufacture of Milk Products, exported goods to Germany under the Drawback Scheme instead of the DEPB Scheme, resulting in a lower rate of drawback. Upon realizing the error, the appellant applied for the conversion of shipping bills from drawback to DEPB under Section 149 of the Customs Act, 1962. The request was initially rejected by the Respondent, and subsequently by the Ld. Commissioner (Appeals) based on Circular No. 04/2004 dated 16.01.2004, which was later substituted by Circular No. 36/2010 dated 23.09.2010 allowing such conversions.

Arguments:
The appellant's counsel argued that the impugned order was unsustainable as it relied on an outdated Circular, whereas Circular No. 36/2010 dated 23.09.2010 permits the conversion of shipping bills between schemes. The counsel highlighted that the time limit of three months for conversion under Circular No. 36/2010 was unreasonable and had been set aside by various courts, including the Punjab and Haryana High Court. The appellant was willing to return the drawback benefits availed, as per the submissions made.

Decision:
After hearing both parties and examining the records, the Tribunal found that the authorities had erred in rejecting the conversion request based on the old Circular. The Tribunal noted that Circular No. 36/2010 dated 23.09.2010 allows for such conversions, and the appellant had made the request within a reasonable timeframe. Additionally, the Tribunal cited precedents where conversion between schemes was permitted under Section 149 of the Customs Act, 1962. Consequently, the impugned order was deemed unsustainable in law, and the appeal of the appellant was allowed.

Conclusion:
The Tribunal set aside the impugned order dated 20.04.2011 and allowed the appellant's appeal for the conversion of shipping bills from the Drawback Scheme to the DEPB Scheme, emphasizing the applicability of Circular No. 36/2010 dated 23.09.2010 and the absence of a time limit under Section 149 of the Customs Act, 1962 for such conversions.

---