2004 (7) TMI 115 - AT - Customs

Tribunal rectifies export mistake, allows conversion of duty free shipping bills to drawback bills

The Tribunal allowed the rectification application for the mistake in holding M/s. Evergreen Industries, Myanmar as the exporter in the final order. The ... Conversion of duty free shipping bill to duty drawback bill - entitlement to drawback on export - Rectification of mistake in appellate order (Review/ROM) - identity of exporter for drawback purposes - precedential application of Tribunal ratioRectification of mistake in appellate order (Review/ROM) - identity of exporter for drawback purposes - The apparent mistake in the impugned order treating the consignee as the exporter was rectified and corrected on record. - HELD THAT: - The Tribunal examined documentary evidence showing that the shipping bills were prepared in favour of M/s. Evergreen Industries, Myanmar and were signed by that company's representative on presentation, and that the appellants had received payment from M/s. Evergreen. On these undisputed facts the Tribunal held that M/s. Evergreen Industries could not be treated as the exporter of the goods and that the earlier characterization was an apparent mistake on the record which warranted rectification. The ROM application was therefore allowed to correct this error. [Paras 2]Appellants' ROM application allowed and the mistake of treating the consignee as exporter corrected.Conversion of duty free shipping bill to duty drawback bill - entitlement to drawback on export - precedential application of Tribunal ratio - On merits, the appellants were entitled to have the duty free shipping bills converted into drawback shipping bills and the Commissioner's order denying conversion was set aside. - HELD THAT: - The Tribunal found the facts undisputed: goods were exported to M/s. Evergreen Industries, payment was received by the appellants, and the shipping bills were signed by Evergreen's representative on presentation. Given these facts, and noting that the appellants would have been entitled to drawback had the words 'duty free shipping bill' not been mentioned, the Tribunal applied the ratio of an identical earlier decision and concluded that conversion of the shipping bills to drawback bills was warranted. Accordingly the impugned order of the Commissioner was set aside and the appeal allowed with consequential relief as per law. [Paras 5, 6]Impugned order of the Commissioner set aside; appeal allowed and conversion to drawback bills ordered.Final Conclusion: The Tribunal allowed the ROM to correct the mischaracterisation of the exporter and, on the merits, set aside the Commissioner's order and allowed conversion of the duty free shipping bills to drawback shipping bills, granting consequential relief. Issues involved: Rectification of mistake in final order regarding conversion of free Shipping Bill to duty Drawback bill; Appeal against order declining conversion of duty free shipping bill to drawback bill.Rectification of mistake in final order: The appellants sought rectification of a mistake in the final order where their claim for conversion of the free Shipping Bill to duty Drawback bill was declined. The shipping bills were prepared in favor of M/s. Evergreen Industries, Myanmar, but it was proven that the company was not the exporter, and the mistake in holding them as such was apparent. The company had only purchased the goods, and the appellants had already received payment from them. The Tribunal allowed the rectification application.Appeal against order declining conversion: The appellants exported goods to M/s. Evergreen Industries, Myanmar using duty free shipping bills. The goods were received by the company against payment, and the shipping bills were signed by their representative on behalf of the appellants. The appellants were entitled to drawback on the export if the words 'duty free' had not been mentioned in the bills. Citing a similar case where conversion was allowed, the Tribunal set aside the Commissioner's order and allowed the appeal for conversion to drawback bills, providing consequential relief as per law.