Conversion of shipping bills must be examined on merits; a circular-based time bar cannot defeat claims supported by contemporaneous evidence.

A request for conversion of shipping bills from the Advance Authorisation Scheme to the Duty Drawback Scheme could not be rejected mechanically on the basis of a circular-based time limit where the governing circular had been held ultra vires and contemporaneous documentary evidence was relevant. The rejection was therefore unsustainable, and the matter was remanded for fresh consideration on merits by the Original Authority, disregarding the circular-based delay bar.

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Issues: Whether rejection of the request for conversion of shipping bills from the Advance Authorisation Scheme to the Duty Drawback Scheme on the ground of delay under Circular No. 36/2010-CUS was sustainable, and whether the matter required reconsideration on merits.

Analysis: The impugned rejection was based solely on the time-limit prescribed in the circular. The governing issue was already covered by a prior decision of the Tribunal in the appellant's own case, following the Gujarat High Court's view that the circular was ultra vires Article 14 and Article 19(1)(g) of the Constitution of India and Section 149 of the Customs Act, 1962, and that conversion of shipping bills could be permitted on the basis of contemporaneous documentary evidence. That view had been affirmed by the Supreme Court. In this legal position, the rejection founded on the circular could not stand and the request had to be examined independently on merits.

Conclusion: The rejection was unsustainable. The matter relating to the 104 shipping bills was required to be reconsidered by the Original Authority on merits, ignoring the circular-based time bar.

Final Conclusion: The impugned order was set aside and the appeal succeeded by way of remand for fresh decision in accordance with law.

Ratio Decidendi: A request for conversion of shipping bills cannot be rejected mechanically on the basis of a circular-based time limit where the governing circular has been held ultra vires and the claim must be examined on merits with reference to contemporaneous documentary evidence.

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