Can SB be changed when Goods exported with payment of Tax and wrongly mentioned under LUT

[deepak gulati]

We have exported Goods with payment of Tax, CHA wrongly filed documents as Export under LUT.

Can SB be changed now, as Refund is tedious from department and easy in case of with payment of tax

[KASTURI SETHI]

Dear Querist,

(i) Answer is 'YES'. See Section 149 of the Customs Act, 1962 as amended .

SECTION 149. Amendment of documents. - Save as otherwise provided in sections 30 and 41, the proper officer may, in his discretion, authorise any document, after it has been presented in the custom house to be amended ¹[in such form and manner, within such time, subject to such restrictions and conditions, as may be prescribed]:

Provided that no amendment of a bill of entry or a shipping bill or bill of export shall be so authorised to be amended after the imported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be.

²[Provided further that such authorisation or amendment may also be done electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria:

Provided also that such amendments, as may be specified by the Board, may be done by the importer or exporter on the common portal.]

1. Inserted vide FINANCE (NO. 2) ACT, 2019w.e.f. 01-08-2019

2. Inserted vide THE FINANCE ACT, 2021 dated 28-03-2021 w.e.f. 28-03-2021.

(ii) Also peruse the following judgement of Hon'ble Supreme Court:-

COMMISSIONER OF CUSTOMS Versus N.C. JOHN & SONS PVT. LTD. - 2022 (8) TMI 240 - SC ORDER

(3) In this context, also go through Section 154 of the Customs Act, 1962..

(4) There is no time limit under Section 149 of the Customs Act, 1962. Read case law :-

ORIENTAL CARBON & CHEMICALS LTD. Versus UNION OF INDIA - 2021 (4) TMI 29 - GUJARAT HIGH COURT

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[KASTURI SETHI]

Definition of 'conversion' as per Regulation 2 (b) of SHIPPING BILL (POST EXPORT CONVERSION IN RELATION TO INSTRUMENT BASED SCHEME) REGULATIONS, 2022

(b) “Conversion” means amendment of the declaration made in the shipping bill or bill of export to any other one or more instrument based scheme, after the export goods have been exported

AI Summary

Amendment of shipping bill can be authorised post-export under Customs Act to correct export scheme and permit conversion. Amendment of a shipping bill filed under LUT is permitted post presentation and post export where documentary evidence existing at the time of export supports the change; the customs framework allows authorised electronic amendments and recognises conversion of a shipping bill after export to an instrument based scheme, with case law indicating no absolute time limit for such corrections.