Advance license details missing from export bills deemed rectifiable error under Section 149 Customs Act

The CESTAT Kolkata allowed the appellant's appeal regarding rectification of export shipping bills. The appellant had inadvertently failed to mention advance license details in bills of export despite including them in invoices and packing lists. The Commissioner (Appeals) initially correctly held this was a rectifiable error under Section 149 of the Customs Act, 1962. However, a subsequent Commissioner (Appeals) ignored previous orders and factual details, unnecessarily prolonging the matter for 10 years. The Tribunal held that adding advance license numbers to shipping bills constituted minor rectification, not amendment, as supporting documents existed at the time of export. The impugned order was set aside, with the Tribunal criticizing the Revenue's indirect review method that caused unnecessary delays and difficulties for the appellant in obtaining closure reports from DGFT.

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Issues Involved:

1. Rectification of Bills of Export under Section 149 of the Customs Act, 1962.
2. Conversion of Free Shipping Bills to Export Promotion Shipping Bills.
3. Review and Appeal process by the Revenue Department.

Summary:

Issue 1: Rectification of Bills of Export under Section 149 of the Customs Act, 1962

The Appellant exported 44 consignments of Calcium Carbonate to Nepal under Bond with Advance Licences but failed to mention the Advance Licence numbers in the Bills of Export due to an error by their CHA. The Assistant Commissioner of Customs, Guwahati, denied their request for rectification, considering it as conversion of Free Shipping Bills to Export Promotion Shipping Bills. The Commissioner (Appeals) initially allowed the rectification under Section 149 of the Customs Act, 1962, recognizing it as an inadvertent omission. This decision was not appealed further by the Committee of Commissioners, leading the Adjudicating Authority to permit the necessary corrections.

Issue 2: Conversion of Free Shipping Bills to Export Promotion Shipping Bills

Despite the initial acceptance, the Revenue filed an appeal against the rectification, arguing that only the Commissioner is authorized to convert Free Shipping Bills to Export Promotion Shipping Bills. The Tribunal remanded the matter, emphasizing that the principles of natural justice were not followed. Upon remand, the Commissioner (Appeals) held that conversion was not permitted, prompting the Appellant to approach the Tribunal again. The Tribunal noted that the rectification was a minor technical error permissible under Section 149 and that the issue had reached finality with the initial acceptance by the Committee of Commissioners.

Issue 3: Review and Appeal process by the Revenue Department

The Tribunal criticized the Revenue for indirectly pursuing an appeal after the initial decision not to appeal further, which amounted to overriding the earlier review decision. The Tribunal cited precedents where subsequent reviews after acceptance of an order were deemed unjustified. The Tribunal concluded that the Revenue's actions were legally incorrect and resulted in unnecessary prolonged litigation, causing significant inconvenience to the Appellant.

Conclusion:

The Tribunal set aside the impugned order, upheld the rectification of the Bills of Export, and allowed the appeal with consequential relief. The Tribunal expressed strong displeasure at the Revenue's handling of the case, emphasizing the waste of judicial time and the undue hardship caused to the Appellant.

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