CBEC Circular prescribing three-month limit for shipping bill amendments declared ultra vires Constitution and Section 149 Customs Act

CESTAT Mumbai held that CBEC Circular No.36/2010-Customs prescribing three-month time limit for shipping bill amendment/conversion requests is ultra vires to Articles 14 and 19(1)(g) of the Constitution and Section 149 of Customs Act, 1962. Following Gujarat HC and Bombay HC precedents, the tribunal found no statutory time limit exists for such requests. The impugned communication denying appellant's amendment request was set aside, matter remanded to Commissioner of Customs for reconsideration. Appeal allowed in appellant's favor.

---

---

Issues involved: Appeal against denial of request for amendment/conversion of shipping bills based on time limit prescribed under Section 149 of the Customs Act, 1962.

Summary:
The appellant filed an appeal against the denial of their request for amendment/conversion of shipping bills by the Assistant Commissioner of Customs, citing a time limit issue. The Tribunal considered whether there is a time limit prescribed for such requests under Section 149 of the Customs Act, 1962. It was noted that the statutory provision does not specify a time frame for filing such requests. The Central Board of Indirect Taxes & Customs (CBIC) later framed regulations in 2022, prescribing a one-year time limit extendable by the Commissioner of Customs. The Tribunal found that a circular issued by CBEC in 2010, setting a three-month time limit, was ultra vires to the Constitution and the Customs Act. Citing judgments from the Gujarat High Court and the Bombay High Court, the Tribunal held that CBEC could not prescribe a time limit for such requests. The impugned communication denying the appellant's request was set aside, and the matter was remanded back to the Commissioner of Customs for reconsideration within five weeks, with a provision for a personal hearing for the appellant. The appeal was allowed in favor of the appellant.

In conclusion, the Tribunal ruled in favor of the appellant, emphasizing the lack of a prescribed time limit under Section 149 of the Customs Act and the invalidity of the CBEC circular setting a time limit. The matter was remanded back to the Commissioner of Customs for reconsideration within a specified timeframe and provision for a personal hearing for the appellant.

---