Previous year LUT filed accidentally on shipping

[Ayush Jain]

I think my CHA has accidentally filed the LUT number of previous year in the shipping bill made in June this year. However I am unable to see the LUT number on the shipping bill itself. If in case the lut number is incorrect, what shall I do now ? Any way to correct it since shipping bill has been filed . Kindly guide on this issue. Is there any way to fix this or any kind of remedy available? Your expert opinion is very much appreciated 

[KALLESHAMURTHY MURTHY K.N.]

Sir,

 Use of the previous year’s LUT Number in the shipment bill is a human error. You might have obtained the LUT for the current year since you have exported goods. So, you can go before the Customs Authorities for the shipping bill amendment with the relevant documents, especially the following.

Copy of Shipping Bill in original entries.

A letter from the exporter confirming the LUT reference detailing the discrepancy.

Copies of the previous and current years’ LUT.

A copy of the export invoice.

Any other supporting documents like export invoices, bills of lading, etc.

You can also take shelter under the CBEC Circular No. 37/11/2018-GST dated 15th March, 2018, in case of a refund issue.

Extract of the relevant portion of the Circular..

‘4.1. In this regard, it is emphasised that the substantive benefits of zero rating may not be denied where it has been established that exports in terms of the relevant provisions have been made. The delay in furnishing the LUT in such cases may be condoned and the facility for export under LUT may be allowed on an ex post facto basis, taking into account the facts and circumstances...’

[Ayush Jain]

Thank you for the detailed explanation 

[Ganeshan Kalyani]

In my view, it is a clerical error. Having LUT filed is important and if you have filed it then keep it as a record to reply when notice comes.

[KASTURI SETHI]

It is a typographical error. Nothing to worry. You have original copy of LUT filed with the department in your possession.. Mere mention of wrong year cannot disentitle you from export benefits. You can remain INDIFFEREN, if objection is raised, then follow the advice of Sh. Kailashmurthy Murthy, Sir.

[KALLESHAMURTHY MURTHY K.N.]

Dear Sirs, 

It is good advice by Sri Kasthuri Sethi Ji. Clerical error / typographical error in this case may not be taken seriously. 

[Ayush Jain]

Actually the issue is that the LUT number filed is incorrect I.e the LUT number filed is not the current number but the one which was being used in the previous year. Will that make any difference?

[KASTURI SETHI]

Dear Querist,

This is with reference to your query at serial no. 3.2. In this scenario also, such lapse will be treated as minor lapse. Unintentional typographical or clerical error/lapse. Refund cannot be denied.

If still over-worried, read and follow the reply of Sh. Kailashammurthy, Murthy, Sir in toto. Circular no. quoted by him makes it clear. No need to further explain. See Para No.15 of the circular. For your convenience para no.15 is extracted below.:-

"15. These instructions shall apply to exports made on or after 1st July, 2017. It is also advised that refunds may not be withheld due to minor procedural lapses or non-substantive errors or omission".

Procedural lapse means that lapse which is technical and no loss of revenue is caused.

[Ayush Jain]

Thank you for clearing the issue, much appreciated 

[Sadanand Bulbule]

You need not worry if the LUT of the previous year is mentioned, as LUT is a yearly compliance and exports without payment of IGST remain valid. At best, keep current year LUT handy and submit to department in case of query/ scrutiny. Such errors are common without  adverse impact on revenue/entitlement.

[Ayush Jain]

Thank you sir

[Shilpi Jain]

LUT number is not mandatory on shipping bill. So do not worry.

[Raghunandhaanan rvi]

 I agree with Ms Shilpi Jains view.  There is no LUT number or year mentioned in the shipping bill. CHA is just declaring in the shipping bill that the export is under LUT.  In my view, no amendment in the shipping bill is necessary as long as the export was made under LUT. 

AI Summary

LUT clerical error: shipping bill entry can be amended and minor lapses won't bar zero rating benefits.
Use of an incorrect LUT in a shipping bill is a clerical/typographical lapse that does not ordinarily deny zero rating if exports occurred under LUT. The shipping bill can be amended with Customs by submitting the original shipping bill, exporter letter, copies of prior and current LUTs, invoices and other supporting documents. Administrative guidance permits condonation of delayed or post facto LUTs where substantive export conditions are met, and refunds should not be withheld for minor procedural lapses.