The Chandigarh CESTAT allowed the conversion of shipping bills from one scheme to another scheme under Section 149 of the Customs Act, 1962.
The appellant/assessee is engaged in the manufacture of Milk Products and they have exported their products to Germany by various shipping bills.
As per the appellant, they have exported the goods for the first time, and therefore, inadvertently shipping bills were filed under Drawback Scheme where the rate of drawback was 1% whereas the appellant was duly entitled to export under DEPB Scheme at the rate of 9%.
On coming to know that the CHA had wrongly filed shipping bills under Drawback Scheme instead of DEBP Scheme, the appellant filed an application dated 08.07.2010 for conversion of shipping bills from drawback to DEPB under Section 149 of the Customs Act, 1962.
The Respondent vide Order dated 28.09.2010 has rejected the claim of the appellant taking the view that conversion is allowed where benefit of export promotion scheme claimed by exporter has been denied by DGFT/MOC from customs due to any dispute.
Aggrieved by the Order- in-Original dated 28.09.2010, the Appellant preferred an Appeal before the Ld. Commissioner (Appeals), Chandigarh and the Commissioner (Appeals) rejected the request for conversion of shipping bills by relying upon the Board Circular No. 04/2004 dated 16.01.2004.
The appellant submitted that the order is not sustainable in law as the same has been passed by relying upon the old Board Circular which has been subsequently changed by issuance of a new Circular. The Board Circular No. 04/2004 dated 16.01.2004 relied upon by both the lower authorities has been substituted by another Circular No. 36/2010 dated 23.09.2010 which allows conversion of shipping bills from one scheme to another. In the Circular No. 36/2010 dated 23.09.2010 itself, it is provided that in both drawback scheme and DEPB scheme, there is the same level of examination and therefore, conversion is permissible.
The CESTAT held that the request for conversion was made within six months from the date of export whereas under Circular No. 36/2010 conversion is allowed if the request for the same is filed within three months from the date of export order.
Case Title: M/s Crown Milk Specialities Private Limited V/s Commissioner of Customs, Amritsar