Converting "no-incentive" shipping bills to claim drawback and DFIA/VKGUY export benefits allowed despite circular time limit

The dominant issue was whether Customs could reject amendment/conversion of a "no export incentive/free" shipping bill to reflect drawback and exports under DFIA/VKGUY on the ground that such conversion is impermissible and time-barred by a Board circular. The Tribunal held that entitlement under DGFT export incentive schemes is to be confirmed by DGFT and that Customs must consider DGFT's amendments/clarifications where produced; further, the Board circular's three-month limit cannot be invoked to deny conversion/amendment of shipping bills, consistent with prior Tribunal decisions following the jurisdictional HC. Since scheme details were disclosed in the shipping bills and invoices, denial was unjustified; the appeal was allowed.

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Issues involved:
The issues involved in this case are the amendment of a shipping bill from no export incentive to a duty draw back and the conversion of the shipment under DFIA and VKUY scheme, as well as the rejection of the request for amendment of the shipping bill.

Summary:

1. The appellant filed a shipping bill for export but later requested an amendment due to an inadvertent mistake, which was rejected. The Tribunal set aside the order, but the High Court remanded the matter for further consideration.

2. Upon re-hearing, the appellant's counsel highlighted the communication with authorities regarding the amendment request. The High Court's decision in a similar case was referenced, questioning the denial based on a circular.

3. The adjudicating authority did not consider the appellant's detailed submissions and issued the impugned order without proper examination. The appellant intended to claim benefits under specific schemes despite the error in the shipping bill.

4. Various judgments were cited in support of the appellant's position, emphasizing the possibility of converting a free shipping bill to an incentive scheme under Section 149 of the Customs Act 1962.

5. Invoices and shipping bill details clearly indicated the schemes under which the export was made, supporting the appellant's claim for amendment.

6. The appellant's intention to claim benefits under specific schemes was evident from the shipping bill itself, not just as a later request for incentives post-export.

7. The appellant's counsel referred to relevant judgments supporting the allowance of amendments in shipping bills for claiming incentives.

8. The AR supported the adjudication authority's decision, emphasizing the need for examination of goods under each scheme before considering an amendment request.

9. The Tribunal considered the facts comprehensively and allowed the appeal, noting the appellant's compliance with the schemes and the oversight in the shipping bill.

10. Precedents were cited to support the appellant's claim for amendment, highlighting that the time limit prescribed in a circular should not restrict the amendment of shipping bills.

11. Ultimately, the appeal was allowed, and the impugned order denying the amendment was set aside.

(Order pronounced in Open court on 30.01.2024)

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