Tribunal Overrules Customs Order; Allows Conversion of Shipping Bills Without Time Limit u/s 149.

The Tribunal set aside the impugned order denying the conversion of shipping bills from the Advance Authorization scheme to the Duty Drawback scheme. The appellant's request was initially denied by the Commissioner of Customs based on a time limitation outlined in a Board Circular. However, the Tribunal referenced the Gujarat HC's decision, which declared the Circular as ultra vires to Section 149 of the Customs Act, and noted the SC's dismissal of a related special leave petition. Consequently, the appeal was allowed, as Section 149 did not impose a time limitation on such conversion requests.

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Issues Involved: Denial of conversion of shipping bills under Advance Authorization scheme to Duty Drawback scheme for realization of export benefits.

Summary:

Issue 1: Denial of Conversion Request
The appeal was filed against the denial of conversion of shipping bills under Advance Authorization scheme to Duty Drawback scheme for export benefits. The appellant contended that due to the withdrawal of customs duty on crude oil, they sought conversion to Duty Drawback scheme. The Commissioner of Customs denied the request citing a time limitation based on a Board Circular. The appellant argued that there was no time limitation specified under Section 149 of the Customs Act. The Tribunal noted the decision of the Hon'ble Gujarat High Court declaring the Circular as ultra vires Section 149 and dismissed the special leave petition by the Hon'ble Supreme Court. It was held that the denial of conversion was not in order as the Circular was invalidated, and Section 149 did not prescribe any time limitation for such requests.

Decision:
The impugned order denying the conversion request was set aside, and the appeal was allowed.

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