DFIA shipping bill conversion under Customs law may rest on existing export evidence despite circular time limits

Section 149 of the Customs Act, 1962 permits post-export amendment of shipping bills where the request is supported by documentary evidence already in existence at the time of export. The note states that DFIA shipping bills may be converted into drawback shipping bills on that basis, and that the Board circular relied on by the department is enabling rather than restrictive. It also notes that the three-month period in the circular does not override the statutory power under Section 149. Where export documents are available, no import has been made against the DFIA, and cancellation was sought from DGFT without response, denial of conversion may unfairly deprive the exporter of drawback benefit.

---

---

Issues: Whether DFIA shipping bills could be converted into drawback shipping bills under Section 149 of the Customs Act, 1962 on the basis of documentary evidence existing at the time of export, despite the request being made after the period mentioned in the Board circular and despite delay in cancellation of the DFIA by DGFT.

Analysis: The conversion of shipping bills is governed by the proviso to Section 149 of the Customs Act, 1962, which permits amendment after export if supported by documentary evidence already in existence at the time of export. The circular relied upon by the department was treated as enabling rather than restrictive, and the 3-month period mentioned in it could not defeat the statutory power under Section 149. The goods had been exported, the export documents were available, no import had been made against the DFIA, and the exporter had already sought cancellation of the DFIA but was left without a response. In these circumstances, denial of conversion would unjustly deprive the exporter of the drawback benefit.

Conclusion: Conversion of the DFIA shipping bills to drawback shipping bills was held to be permissible, and the rejection of the request was set aside.

---