Retrospective conversion of DEEC exports preserves Notification No. 97/95 benefit for reimported goods despite pending cancellation formalities.

Retrospective conversion of the export shipping bill from DEEC to non-DEEC rendered the earlier DEEC entry non est in law, so the reimported goods remained eligible for Notification No. 97/95. The benefit could not be denied merely because the formal cancellation of the DEEC Book entries was still being completed administratively. Clearance of the goods was permitted on execution of bond pending completion of the cancellation process.

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Issues: Whether reimported goods were entitled to the benefit of Notification No. 97/95 after cancellation of the earlier DEEC Book entries and retrospective conversion of the export from DEEC to non-DEEC.

Analysis: The relevant export had been entered under the DEEC Scheme, but the competent customs authority had permitted cancellation of the DEEC logging and conversion of the shipping bill into a non-DEEC shipping bill. Once such retrospective conversion is permitted, the earlier DEEC export is treated as non est in law. The department did not challenge the Collector (Appeals)'s finding in principle that the benefit of Notification No. 97/95 would be available. On the same principle applied by the Supreme Court in the cited context of reversal of credit, the benefit could not be denied merely because the formal cancellation had yet to be worked out administratively.

Conclusion: The appellants were entitled to the benefit of Notification No. 97/95, and the necessary cancellation of the DEEC entries was directed to be carried out. Clearance of the goods was also permitted on execution of bond pending such cancellation.

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