TaxTMI 
TaxTMI 
2026 (8) TMI 1086
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....Since the exports were actually intended towards fulfilment of EPCG export obligation, the appellant filed an application dated 06.04.2015 under Section 149 of the Customs Act, 1962 seeking amendment/conversion of the Free Shipping Bills into EPCG Shipping Bills. No action was taken by the Customs Dept. A further reminder was submitted on 13.08.2024. 2.1. The Assistant Commissioner, Export Section, Customs House, Kolkata rejected the request vide letter dated 11.11.2024, on the ground that under Notification No. 11/2022-Cus. (N.T.), the request for conversion was required to be made within one year from the date of clearance and therefore the request was time-barred. 3. On appeal, the Commissioner (Appeals) upheld the rejection vide Order-in-Appeal No. KOL/CUS/PORT/DC/197/2025 dated 20.06.2025, holding that the amendment sought after an inordinate delay could not be permitted and that the claim had become stale. 4. Being aggrieved by the said Order-in-Appeal, the present appeal has been filed before the Tribunal. 5. The Ld. Counsel appearing on behalf of the appellant makes the following submissions: (i) The Section 149 of the Customs Act 1962, contains no limi....
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.... shipping bills was ultra vires Section 149 of the Customs Act. b. Gupta Enterprises v. The Commissioner of Customs. No prescribed limit for filing an application for conversion or amendment of documents u/s 149 of Customs Act 1962 where CESTAT allows the conversion These judgments directly support the appellant's case. 5.2. In view of the above submissions, it is prayed that the present appeal may be allowed, by directing the Revenue authorities to pass an order under Section 149, allowing the conversion of Free Shipping Bills to Shipping Bills filed claiming the EPCG benefits. 6. The Ld. Authorized Representative appearing on behalf of the Revenue submits that the appellant had cleared their consignments under Free Shipping Bills, but much later after more than 8 years, they have filed their request to amend the same in terms of Section 149 of the Customs Act, 1962; that such inordinate delay is not permissible since the Circular issued on 23.09.2010, has clearly stated that request for such amendments should be made within 3 months from the date of exports. Hence, he justifies the rejection of the amendment request by the lower authorities. 6.1.....
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....o 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." (Emphasis supplied) 9. Our Observation: It is mandated that as a general rule, the amendment for the Shipping Bill should not be permitted after the goods have been exported. But exception to this Rule can be made, if the documentary evidence was in existence as on the date of export. ▪ Notification No. 11/2022-Customs (N.T.) dated 22.02.2022: Notification No. 11/2022-Customs (N.T.) New Delhi, the 22nd February, 2022 G.S.R. (E).- In exercise of the powers conferred by section 157 read with section 149 of the Customs Act, 1962 (52 of 1962), the Board, hereby makes the following regulations, namely:- 1. Short title and commencement. - (1) These regulations may be called the Shipping Bill (Post export conversion in relation to instrument based scheme) Regulations, 2022. (2) They shall come into force on the date of their publication in ....
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....DGFT/MoC&I or Customs due to any dispute. 2. It has been represented to the Board that the norms for allowing conversion of shipping bills may be relaxed and the Commissioners should be allowed to consider requests for conversion of shipping bills from free to export promotion scheme and from one export promotion scheme to another on a case to case basis depending on the merits of the case. It has also come to notice of the Board that the Tribunals in a series of judgments have held that amendment to shipping bill after export of goods is governed by the proviso to section 149 of the Customs Act, 1962 and if the requirements of the said proviso are satisfied, conversion of shipping bill should be allowed. The conversion of the shipping bill from one scheme to another cannot be linked with denial of benefit of one scheme by DGFT/MoC&I or Customs due to some dispute as no such condition for amendment of shipping bill has been provided in section 149 of Customs Act, 1962. 3.The issue has been re-examined in light of the above. It is clarified that Commissioner of Customs may allow conversion of shipping bills from schemes involving more rigorous examination to scheme....
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....ustoms, Central Excise & Service Tax Drawback Rules, 1995. 11. Our Observation: (a) Conversion is to be permitted based on the merits of each case. (b) Request for conversion to be made by the exporter within three months from the date of Let Export Order [This condition stands set aside by various High Courts] (c) The Exporter should have fulfilled all the other conditions towards the Export Promotion Scheme for which he is seeking conversion 12. We have gone through the Letter No. CUS/ASS/MISC/1090/2024-EXP dated 11.11.2024, which is reproduced below: 13. The relevant portion of the Order-in-Appeal No. KOL/CUS/PORT/DC/197/2025 Dated 20.06.2025 is reproduced below: 14. From the letter dated 11.11.2024 and the above extract of the Order-in-Appeal, we find that the sole ground on which the request for amending the Free Shipping Bill to EPCG applied Shipping Bill is on the ground of 'time-bar' alone. No other grounds have been taken on account of non-examination of the consignments at the time of exports or towards non-fulfilment of any other condition specified for the EPCG based exports. 15. We have for reference the following case laws dea....
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....rcular considering that the Customs Act has a pan-India operation being a Central Act, following the decision of the Supreme Court in Kusum Ingots & Alloys Ltd. v. Union of India and Anr. [(2004) 6 SCC 254 = 2004 (168) E.L.T. 3 (S.C.)]. The decision of the Gujarat High Court on the Circular in question was applicable and binding on all the customs jurisdictions throughout India." ▪ M/s. Arvind Smart Textiles Ltd. v. Commissioner of Customs [(2024) 15 Centax 73 (Tri.-Mad)]: "6. On perusal of the impugned order, it seen that the Original Authority has held in Paragraph 8 that as the request for amendment is made after three Months' time as prescribed in Board Circular No. 36/2010 dated 23-9-2010, the request cannot be granted. The very same issue was considered by the Tribunal in the case M/s. Autotech Industries (India) Pvt. Ltd. (supra). The Board Circular was also considered by the Tribunal to hold that during the relevant period, there is no specific time limit prescribed in Section 149 to request for amendment of shipping bill. The relevant Paragraphs of the decision of the Tribunal reads as under:- "40. Reverting to the case on hand, althoug....
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....r prescribing a period of three Months to request for amendment of shipping bill. The Hon'ble Court held that as Section 149 prior to its amendment, does not prescribe any time limit, the Board vide Circular cannot impose a time limit so as to decline the request for amendment of shipping bill. 8. After appreciating the facts and following the decisions cited supra, we are of the considered opinion that the rejection of request for amendment of shipping bill is not justified. The impugned order is set aside. The appeal is allowed with consequential relief, if any, as per law." ▪ M/s. ADF Foods Ltd. v. Commissioner of Customs, Nhava Sheva-II [Final Order No. 86108 of 2025; Date of Decision: 17.07.2025; Customs Appeal No. 86244 of 2025 - CESTAT, Mumbai]: "Partial rejection of conversion request made under Section 149 of the Customs Act, 1962 of 2463 shipping bills through which Appellant had exported goods namely Namkeens, Mixtures/Mixed Pickles, Vegetable Pickles etc. between the period 01.10.2014, and 31.12.2020 solely on the ground of limitation as 1767 numbers of shipping bills were pertaining to the period beyond three years of export, is ass....
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....imit and also categorically incorporated in its body that such conversion can be done on the basis of documentary proof (since after export no other material object would be available for such inspection). Therefore, when conversion from one scheme to another scheme would be beneficial to the exporter and there is no time limit available to carry out such conversion it would not be prudent and proper to fix a stipulation of 3 years of period from the date of export to enable the Appellant to convert shipping bills from one scheme to another scheme, on which score alone the rejection order passed by the Commissioner is unsustainable in law. ... 9. Though we have discussed other aspect agitated in the appeal which are not required for the reason that the sole ground of rejection of conversion beyond the period of 3 years by the Commissioner was related to the application of Article 137 of the Limitation Act, which is held by the Hon'ble Apex Court as not applicable, there remains nothing more to deal with the appeal except in declaring our views that shipping bills from Sr. No. 1 to Sr. No. 902 of Annexure-1 and Sr. No. 1 to Sr. No. 865 of Annexure-2 cover....
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....contained in the Circular No. 6/2002-Cus. dated 23.01.2002. 18.1. From the initial Order dated 11.11.2024 and the impugned Order-in-Appeal, we find that this issue was not raised at all by both the authorities. Hence, we are not required to address this issue. We also find that the rejection of the amendment request was solely on the ground of time-bar. However, in order to not make the appellant suffer another round of litigation on such issues, we have taken up this issue also, since it has been raised by the Ld. Authorized Representative. 19. We have for reference the sample extracts of the relevant documents like Shipping Bill, Export Duty payment details, Invoice and Bank Realization statements, which are reproduced below: ▪ Sample copies of Shipping Bills: ▪ Sample copy of Invoice: ▪ Sample copy of Bank Certificate of Export and Realization: 20. The above documents show that the appellant has filed the Free Shipping Bills, on which no Physical Examination was taken up, as was rightly pointed out by the Ld. A R. It is also seen that the goods exported are Iron Ore on which the Export Duty @ Rs.300 per MT has been paid by th....
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....ent to pass appropriate order to convert the shipping bills of the petitioner from 01.10.2017 to 13.03.2020 to drawback shipping bills while exercising its powers under Section 149 of the Customs Act, so that the petitioner becomes eligible for duty drawback as per Circular no.88 of 2017. Rule is made absolute to the aforesaid extent. No order as to cost." ▪ M/s. Vedanta Aluminium Ltd. v. Commissioner of Cus. & C.Ex., Visakhapatnam [2016 (344) E.L.T. 288 (Tri. - Hyd.)]: "6. I have considered the submissions made by either side carefully. The issue involved is conversion of free shipping bills into DEPB shipping bills. It is the case of the appellants that at the time of filing the shipping bills dated 17-6-2008, they were eligible to avail DEPB benefit against exports made, but had omitted to mention the same in the shipping bill. It is seen from the documents that 772.724 MTs of Calcined Alumina was cleared from their factory for export under ARE1 No. 2008-09/66, dated 25-5-2008. It was declared in the said ARE1 form that the export is in discharge of the export obligation under EPCG Licence No. 05301378737/2/11/00, dated 12-1-2005 and benefit under DEPB sc....
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....nt after its presentation in the Customs House cannot be curtailed or set to naught by circulars of the Board. The approach adopted by the respondent has the effect of inferring from & conferring upon the Board circular, a status of a statute overruling the proviso to Section 149 of the Customs Act, 1962 which is impermissible. 10. From the foregoing, I am of the view that the rejection of the request for conversion of shipping bills is unjustified. Applying the ratio laid in the above judgments which are applicable to the facts of the case, I hold that the impugned order is not sustainable." 24. We have also for reference the following case-law wherein the High Court and Tribunals have taken the view that the substantive benefit accruing to the exporter cannot be denied on account of procedural infraction, where the defects are curable: ▪ M/s. Oriental Carbon & Chemicals Ltd. v. Union of India [2021 (377) E.L.T. 850 (Guj.)]: "31. There is no dispute that the writ-applicant is eligible to claim the benefits under the MEIS since it has admittedly exported the notified goods to the notified countries as per the scheme of the MEIS. 32. The ....
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....ven to an exporter, the procedures cannot be imposed to deny the substantive benefit under the Foreign Trade Policy. 17. In this connection, reference may be made to the decision of the Hon'ble Supreme Court in the cases of Commissioner of Sales Tax v. Auriya Chambers of Commerce [1986 (3) SCC 50 = 1986 (25) E.L.T. 867 (S.C.)] and State of Gujarat v. Ramprakash P. Puri [(1969) 3 SCC 156] is invited. The Hon'ble Supreme Court has held that rules or procedures are handmaids of Justice and not mistress of law. 18. Incidentally, the Learned Single Judge of this Court in the case of M/s. K.I. International Limited v. Commissioner of Customs (Appeal- II) and Others has also granted similar relief as sought for in this writ petition to the petitioner therein. 19. In this case, there is only a procedural lapse. If the petitioner was otherwise entitled to the aforesaid exporter incentive and was not disentitled to the same, such benefit cannot be denied. Therefore, I am of the view that the impugned order passed by the third respondent has to go as such export incentives cannot be denied on account of procedural lapse. Accordingly, the impugned order passed by the....
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....€à¤®à¤¾ शà¥à¤²à¥à¤• सदन, 15/1सà¥à¤Ÿà¥à¤°à¥ˆà¤£à¥à¤¡ रोड, कोलकाता (वं. प.) - 700001 CUSTOM HOUSE. 15/1 STRAND ROAD, KOLKATA(WB) - 700001 Tel: 033-22131553 Fax No .: 033,22131552 Email Id: preommr-port-cuskol@@gov.in F.No. CUS/ASS/MISC/1090/2024-EXP. Date:11-11-2024 M/s. Roy Global Trading Pvt. Ltd. P-537, Hemanta Mukhopadhyay Sarani 1st Floor, Kol .- 700029 Sub: Request regarding conversion of free shipping bills 001077 dated 10.05.2007, 5362592 dated 05.02.2007, 5363048 dated 07.02.2007 into shipping bill for EPCG.reg. Gentleman, Please refer to your letter dated 13.08.2024 on the mentioned subject wherein it has been requested for conversion of free shipping bill into shipping bill for EPCG. As per Shipping Bill (Post export conversion in relation to instrument based scherne) Regulations, 2022(Notification No. 11/2022-Customs (N.T.)), the request for conversion has to be made within 01 year from the date of order for clearance. In view of above, the request of the conversion of Free Shipping Bill into Shipping Bill fo....
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....arat High Court's ruling that Para 3(a) of Circular No. 36/2010 (three-month limit) was ultravires Section149, In the cited case, the exporter preferred an application dated 28th January 2019 requesting the Commissioner of Customs to allow the amendment of 41 shipping bills filed during the period between October, 2017 and November, 2018 by converting such shipping bills into drawback shipping bills by mentioning the claim for duty drawback on the shipping bills and invoices. The writ applicant invoked Section 149 of the Customs Act, 1962. However, the factual matrix of Mahalaxmi Rubitech is materially distinct from the present case. In the referred case, there wasn't an inordinate delay in filling the amendment application and the same was filed within two years which the Court deemed reasonable, but in the present case, there is a delay of approx 8 years from first application dated 06.04.2015 and 17 years from follow-up application for amendment vide letter dated 13.08.2024. The appellant has failed to provide any valid justification for this protracted delay, nor has they demonstrated circumstances preventing timely compliance. The delay here is beyond the reasonab....
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.... V01.240 .07-0202/07. Yogastation 19061/07 KAUFMANNPORLOS LoadingISHALDIA Nalas of Corleast : CIF ( ) /CFI | 1 #OD [ ] YOU Country ul Destraten Cachange Pais U/3 14 al ÇA Gurrwpor el Invokes QUILIA 406944141-45 . 1195 Vajeingl Code & Qisagatop of Goods Surety Vate FCa Container Itat. TEC 316 COSA1 20011150 HT. TRALE PICKING TI InON"ORE FINES PULK 78-63.5% 26000.000 LESS MOISTURE 4.05 (DEZAILO AD PER INV. ) 70750176,00 (SURUGISIX THOUSAND EIGHT HUNDRED EIGHTY >> OULY) Kuna Vielqnl Jadrilof Expon Vitus Canercy Amoins 100 Value x6 Pier Deductions 7.07.50.176:00 Til apud value Ofl aben ect asteralirabie, thủ vikum ntich eiportoi expecta laresaire on the tila of popds Comincy 035. 17.06,830.00 Amort a 10/5/17 D Cipo1 Ware IQ. Ascais able Vyur undet Sec. 14 DUTY CESS Rata Anount Rata Amount h. 62322176.00 4 .3007- PER RT. FEINC. 0400000.00 NGOOCOT00 Tokal Durs Cass CURRY Payımary Hải Sretan bà i đã po Coslars sheri hamle are buy and copod. Ha gag untach ha deda fin Dalunderclass lo () Pubtallolcetin Siyaun el Exponcinci's & Cia Indion Custom #DI System . Export5 (....
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....880.00 tation: ARTIFY THAT INVOICES IN ALL RESPECTS TRUTH AND CORRECT INCLUDING FAND DESOUPTION OF GOODS REFERRED.THERIN ROYGLOBAL TRADING PRIVATE LIMITED Sighattire a Date Chaty Auml. Signatory Document 5 DANN CERTIFICATE OFY EXPORT COMM NO. 1 To THE JT. DIRECTOR GENERAL OF FORTIER TRADE, 4, Esplanade fart, Calcutta 700 069 We PU's Nay Cabul Treding Pvtltd, 4 Lyon Range, 6ch floor, Kolkata-792031 hereby declare that Wehave lepiardel a documentary esport all to STATE BANK Of EngLA", COMMERCIAL BRANCH, BALLYOUNCE, 53 A Garlahas Road, ICOLICATA - 700 019 fer Ceflection / Negotiation / Purchase en per jaartica lar gires Bervader, frauke Export Popmetlan copy of Syppiep Eil duty Dassolid ty the cato : Dooption .f. poodiar alves i "we Ostory ·tartotol Shipping am Bill of Lading / PP Receipt P. Always ala- Das tinh Lion af Cooda BH Amount Cif ! CLF / FOO(IF Foreign Exchange, Amount a1 per bx of Ladins / Frugt Inwaraste Ampurt aa per Incurren Company's DEl / Rete lut Commivilon / DIcourt Pala # Payable Whether the erport Is In nicely conre:Ib. CHIFEAST OF In Indian funant FOR Value / roo value actually teallred in freq Fere'on Exchange / Rupees Orte....
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....spoolically prescribed In the policy / pipsedies .: Document 6 ANNEXURE-C From ROY GLOBAL TRADING PVT. LTD. ALYONS RANGE. 6"" FLOOR; KOLKATA- 700001 To The Deputy Commissioner Customs Export Department, Customs House 15/1 Strand Road, Kol -1 Dear Sir, सेवोतà¥à¤¤à¤® पà¥à¤°à¤¾à¤ªà¥à¤¤à¤¿ SEVOTTAMi RECEIPT Office of Ihr Con ..... war of Customs KAIKOK SL. No. 5064 Date 06/4/15 (3€ 8 LEITER E ade -08.04.2015. Sub: Conversion of free shipping bill into Shipping bill for EPCG. We humbly submit that we had exported iron ore fines under the following free shipping bills irrespective of the fact that the same were required to be declared against EPCG licenses :- 51.No Shipping Bill No. Items Amount 1. 001077 Dated- 10-05-2007 Iron or fines USD 1706880 2. 5363048 Dated- 09-02-2007 Iron or fines USD 494400 3. 5362592 Dated- 23-02-2007 Iron or fines USD 726589.44 Copy of the said Shipping Bills are attached and marked with ANNEXURE- "A" Due to inadvertence on the part of our concerned staff as well as on the part of our CHA who handled the consignment the re....