Tribunal Allows Conversion of Free Shipping Bills to Drawback Shipping Bills; Case Remanded for Document Verification.

The Tribunal allowed the appeal, finding that under Section 149 of the Customs Act, the appellant is entitled to convert free shipping bills to drawback shipping bills based on existing documentary evidence. The previous denial by the adjudicating authority was set aside due to the lack of document examination. The case was remanded back for document verification and subsequent conversion of the shipping bills, with all other issues remaining open for consideration. The appeal was allowed by way of remand.

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Issues:
The appeal against the denial of conversion of free shipping bills to drawback shipping bills.

Details:
The appellant, a Public Sector Undertaking engaged in manufacturing and trading of petroleum products, exported LPG to Nepal under ex-bond shipping bills instead of drawback shipping bills due to inadvertent mistake. The appellant applied for conversion of free shipping bills to drawback shipping bills, which was denied by the adjudicating authority.

The appellant's advocate argued that Section 149 of the Customs Act, 1962, allows amendment of shipping bills based on existing documentary evidence at the time of export. The advocate cited a previous Tribunal order in support of the contention.

It was further argued that the non-declaration of drawback entitlement on the shipping bill was a procedural lapse and should not result in denial of substantive benefit. The Circular No. 4/2004-Cus was deemed to exceed the powers granted under the Act and Drawback Rules.

The Revenue's representative opposed the appellant's contentions, citing a relevant decision to support the applicability of Circular No. 4/2004-Cus.

After hearing both parties, the Tribunal found that Section 149 of the Customs Act allows for amendment of shipping bills based on existing documentary evidence. Since no documents were examined by the adjudicating authority, the impugned order was set aside. The Tribunal held that the appellant is entitled to convert free shipping bills to drawback shipping bills, subject to document verification.

The matter was remanded back to the adjudicating authority for document examination and conversion of shipping bills, with all other issues left open. The appeal was allowed by way of remand.

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