2008 (1) TMI 166 - AT - Customs

Request for conversion of shipping bill from Advance License to Drawback bills can t be rejected mere for reason that relevant provisions of Foreign Trade Policy are not mentioned in request delay in request due to representation made by exporter to CBEC can be condoned drawback can t be equated to duty so even if amount involved is more than 10 lac appeal to CESTAT could be taken by Single Member Bench appeal against rejection of request is permitted before CESTAT appeal allowed

Summary

Issues:
1. Denial of conversion of shipping bills to drawback category.
2. Jurisdiction of the Appellate Tribunal.
3. Statutory rights of exporters under Section 149 of the Customs Act, 1962.
4. Delay in preferring the request for conversion.

Issue 1: Denial of Conversion of Shipping Bills to Drawback Category

The case involved an appeal against the decision of the Commissioner of Customs rejecting the request for conversion of shipping bills to drawback category. The appellant, a company exporting optical fibers against an Advance Licence, sought to modify the terms for importing fuel. The rejection was communicated by the Joint Commissioner of Customs. The Tribunal addressed objections raised by the Revenue, emphasizing the statutory right under Section 149 of the Customs Act, 1962, to seek amendment of documents. The Tribunal held that the denial based on a Board circular was impermissible, as it could not override statutory provisions. The judgment favored the appellant, directing the authorities to allow the conversion.

Issue 2: Jurisdiction of the Appellate Tribunal

The Revenue raised objections regarding the Tribunal's jurisdiction to hear the appeal. The Tribunal dismissed these objections, highlighting its authority under Section 129A to adjudicate on matters not covered by the Customs Act, 1962. It noted that previous Tribunal decisions had addressed similar issues, establishing its jurisdiction. The Tribunal rejected the Revenue's argument based on the amount involved, emphasizing that the Customs Act's definitions should be applied logically without skewed interpretations.

Issue 3: Statutory Rights of Exporters under Section 149 of the Customs Act, 1962

The Tribunal extensively discussed the statutory rights of exporters under Section 149 of the Customs Act, 1962, emphasizing the authority's obligation to consider requests for document amendments. It clarified that circulars could not override statutory provisions and that denial based on circulars was impermissible. The Tribunal upheld the appellant's statutory right to seek amendment, directing the authorities to allow the conversion of shipping bills to drawback category.

Issue 4: Delay in Preferring the Request for Conversion

The Tribunal addressed the issue of delay in preferring the request for conversion, noting that the appellant's delay might have been due to representations made to the Central Board of Excise & Customs. Citing settled law that delays affecting the rights of the assessee should be condoned, the Tribunal inclined to condone the delay in this case. Despite the delay, the Tribunal allowed the appeal, emphasizing the appellant's legitimate right to seek amendment under Section 149 of the Customs Act, 1962.

This comprehensive analysis of the judgment highlights the key issues, legal interpretations, and the Tribunal's decision in favor of the appellant.