TaxTMI 
TaxTMI 
2022 (2) TMI 101
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....delay in payment of duty for debonding. The Assistant Development Commissioner, MEPZ vide his letter dated 25.11.2009 granted further time upto 31.1.2010 only for the purpose of payment of pending dues. The Deputy Commissioner vide letter dated 21.12.2009 informed the appellant to pay Rs. 2,48,72,339/- along with interest and to surrender green card, LUT before 31.1.2010. The Deputy Commissioner vide his letter dated 16.2.2010 informed MEPZ, Chennai that the unit has paid all the dues to the department and allowed final exit from 100% EOU status on 18.2.2010. It was informed by Assistant Development Commissioner, MEPZ, Chennai that exports made by the appellant upto 31.10.2009 were taken into account for calculation of Net Foreign Exchange Earnings (NFEE). 4. The appellant was granted authorization for EPCG scheme by office of the Joint Director General of Foreign Trade, Coimbatore under EPCG license dated 2.1.2009. Thereafter, the appellant vide their letter dated 12.3.2010 requested for conversion of 274 EOU shipping bills to drawback shipping bills on the ground that they have not availed any duty benefit or EOU benefit for the period from 1.2.2009 to 19.2.2010 and that they ha....
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....ated 11.3.2010 has confirmed that the appellants have not procured any goods indigenously or by way of import after 31.1.2009. The goods were exported after stuffing and sealing by the jurisdictional Central Excise officers under ARE-1. The procedure mentioned in terms of Circular No. 6/2002-Cus dated 23.1.2002 is to be followed for receiving incentives. In Circular No. 13/2003-Cus dated 3.3.2003, it is confirmed that these instructions will hold good if export consignments of EOU is sealed by customs / central excise officers. 10. The learned counsel adverted to Foreign Trade Policy 2009 - 2010 Chapter 5 (export Promotion Capital Goods) EPCG Scheme para 6.18. The said para which relates to exit from EOU scheme reads as under:- "6.18 (a) With the approval of DC, an EOU may opt out of scheme. Such exit shall be subject to payment of Excise and Customs duties and industrial policy in force. (b) If unit has not achieved obligations, it shall also be liable to penalty at the time of exit. **** **** **** **** **** In case there is no proceeding pending under FT(D&R) Act, DC shall issue final debonding order within a period of 7 working days. Between 'No Dues Certificate' issued....
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....amination except (a) where the seals are found tampered with; or (b) there is specific intelligence in which case, permission of Deputy / Assistant Commissioner would be required before checking. Export under Free Shipping Bills: Category of Exports Scale of Examination Exports under Free Shipping Bills i.e. where there is no export incentive No examination except where there is a specific intelligence." 13. As per section 149 of the Customs Act, 1962, the conversion of free shipping bills has to be allowed if the appellant has furnished necessary documents. In the present case, the request for conversion has been rejected without any sufficient grounds. He submitted that the issue is covered by the decision of the Tribunal in the case of Ginni International Ltd. Reported in 2013 (297) ELT 402 (Tri. Del.) which is on the similar set of facts. The said order was appealed by the department before the Hon'ble High Court of Delhi as reported in 2014 (307) ELT 466 (Del.). The view taken by the Tribunal though affirmed by the Hon'ble High Court, the matter was remanded for the limited purpose of verifying whether the inputs have been procured on payment of duty etc. He ....
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....new guidelines regarding conversion of free shipping bills to export promotion scheme shipping bills and conversion of shipping bills from one scheme to another. In Circular No. 36/2010 dated 23.9.2010, it is specifically mentioned under para 6 that "This circular supersedes the Board Circular No. 4/2004-Cus dated 16.1.2004 and the earlier circulars issued in the past on this issue. This circular shall be applicable only to shipping bills filed on or after the date of issuance of this circular. Till such time as EDI system is modified to allow conversion of shipping bill in the EDI system, conversion may be allowed manually". In view of the term provided under para 6 of the Circular ibid, the circular is applicable only for shipping bills filed on or after the date of issuance of Circular No. 36/2010-Cus dated 23.9.2010." 15. Heard both sides and perused the records. 16. At the outset, it has to be stated that the appeal is filed against rejection of request for conversion of free shipping bills to drawback shipping bills. On perusal of the impugned order, the discussion is mainly focused on the issue whether the appellant is eligible for drawback benefit or not. Needless to say ....