GST transition shipping bills: conversion to All Industry Rate drawback allowed under the Customs conversion framework.

Free shipping bills filed during the GST transition period could be converted into All Industry Rate duty drawback shipping bills where the request was made soon after export and the claimant relied on the relevant Board circular. Rejection based only on non-filing of drawback shipping bills at the time of export was not sustainable, because the circular on conversion allowed merits-based consideration under section 149 of the Customs Act, 1962 and recognised drawback on free shipping bills under the proviso to rule 12(1)(a) of the Drawback Rules, 1995. The conversion was allowed and the rejection order was set aside.

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Issues: Whether free shipping bills filed during the GST transition period could be converted into shipping bills claiming All Industry Rate of duty drawback.

Analysis: The export took place within the GST transition window, and the request for conversion was made soon after the exports upon the appellant becoming aware of Circular No. 22/2017-Cus. The rejection was based only on non-filing of drawback shipping bills at the time of export. The Board's circular on conversion of shipping bills permits consideration of such requests on merits under section 149 of the Customs Act, 1962 and also recognizes grant of All Industry Rate drawback on free shipping bills in terms of the proviso to rule 12(1)(a) of the Customs, Central Excise and Service Tax Drawback Rules, 1995. The appellant's claim was held to fall within that framework and the earlier circular on conversion was relied upon for granting the benefit.

Conclusion: The conversion of the free shipping bills into All Industry Rate of duty drawback shipping bills was allowed and the rejection order was set aside.

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