2015 (4) TMI 67

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....appeal on the following substantial question of law: "Whether in the facts and circumstances of the case, the Tribunal was legally justified to allow the appeal filed by the 1st respondent ignoring the fact that they have failed to comply the provisions of Rule 12(1)(a) of Drawback Rules, 1995?" 2. The brief facts of the case are as follows: The first respondent/assessee had made 329 export shipments of Maize under Free Shipping Bills as they were unaware of duty drawback entitlement of the subject goods which was available at the All Industry Rate of 1% on FOB Value. Under the impugned order, the request of the assessee for conversion of free shipping bills into duty drawback shipping bills has been rejected by the Adjudicating Commissi....

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....ods - (a) state on the shipping bill or bill of export, the description, quantity and such other particulars as are necessary for deciding whether the goods are entitled to drawback, and if so, at what rate or rates and make a declaration on the relevant shipping bill or bill of export that - (i) a claim for drawback under these rules is being made; (ii)....... (b)......" 4. The issue of conversion of Free Shipping Bill into Drawback Shipping Bill was discussed by the Ministry of Finance & Company Affairs, Department of Revenue and consequently a circular was issued in Circular No.4 of 2004 dated 16.1.2004 amending the earlier circular Nos.6/03 - Cus. dated 28.1.2003 & 40/2003-Cus. dated 12.5.2003. The said Circular No.4 of 2004 reads ....

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....t exemption from observance of the provisions of Rule 12(1)(a) for the purpose of availment of drawback. This necessarily implies that whereas the provisions of Rule 12(1)(a) for the purpose of availment of drawback. This necessarily implies that whereas the Commissioner may grant exemption from observing any of the provisions of Rule 12(1)(a) of ibid rules for the purpose of allowing drawback, which includes permitting drawback against a free shipping bill, no provision exists for permitting conversion of free shipping bill into drawback shipping bill. In view of above, it is clarified that there is no need for allowing conversion. However, in terms of the proviso to Rule 12(1)(a) of the Customs and Central Excise Duties Drawback Rules 19....

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....er has been denied by DGFT/MOC or Customs due to any dispute. Such conversion may be permitted on merits by the Commissioner on case to case basis subject to the following conditions: a. The request for conversion is made by the exporter within one month of the denial/rejection of the benefit claimed. b. On the basis of available export documents etc., the fact of use of inputs is satisfactorily proved in the resultant export product. c. The examination report and other endorsements made on the shipping bill/export documents prove the fact of export and the export product is clearly covered under relevant SION and DEPB Schedule as the case may be. d. On the basis of S/Bill/export documents the exporter is fulfilling all conditions of th....