TMI Blog2013 (8) TMI 431X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved with the impugned order of Commissioner (Appeals), Revenue has filed the present appeal. 2. We have heard Shri Sumit Kumar, learned DR for the Revenue and Shri Mohan Lal, learned advocate for the respondents. 3. As per facts on record, the respondents filed 155 shipping bills from the period 1.6.2008 to 16.3.09 as free shipping bills showing the export of 'Cutch Block (Acacia Catechu)'. In the said shipping bills, they did not file any declaration for claiming the export incentive. However, they subsequently filed an application with the Range office of the DGFT in Kolkata for duty credit entitlement towards VKGUY Scheme under Chapter 3 of the Foreign Trade Policy 2004-2009 along with all the relevant information. The objection was raised by the said office as regards the absence of endorsement on the said shipping bills in terms of para 3.23.8 of Hand Book of Procedure. Deficiency letter dated 12.2.09 was issued to the respondents to remove the above deficiency and to make a declaration on the shipping bills to the effect -"I/we hereby declare that I/we shall claim the benefit as admissible, under Chapter 3 of FTP". 4. Admittedly, no such declaration was required to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods, the same would be held to be made by the respondents. We find no merits in the above contention of the Revenue. Admittedly, section 149 allows amendment to the documents. Such amendment has to be on the basis of documentary evidence available at the time of export. As such the documentary evidence "appearing in the said section 149" cannot refer to the "amendment" itself. If the same refers to the amendment, as the Revenue has sought to contend, the provisions of said section would become futile and no amendment would admittedly be available of after the time of export itself. 7. As regards the merits, the revenue is not contesting the availability of the benefit of scheme to the respondents. Such declaration were not required to be made in terms of exports prior to 31.5.08. The exports made by the appellants are immediately after the said period. Learned advocate for the respondents have relied upon various decisions to impress upon his stand that on such a scenario conversion of shipping bills is permissible. However, without referring to the said decision, we hold that it is only a case of filing a declaration, a condition which was introduced recently and the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be." 14. Section 30 deals with amendment of Import General Manifest and is not relevant to the documents in question. Section 41 deals with amendment of Export General Manifest or Export Report and this section is also not relevant to the documents in question. So in the context of this case section 149 alone is relevant. The main part of the section gives powers for amendment of documents presented to the Customs, after its presentation. The power is circumscribed by the condition in the proviso to the said section. It stipulates that if any amendment to any shipping bill is sought after the goods have been exported such amendment shall be permitted only on the basis of any documentary evidence which was in existence at the time the goods were exported. That is to say under this section amendment of a document before the goods are exported, are normally allowed. But amendments after the export of goods have to be done with circumspection as per condition prescribed under the proviso. Such power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have been the case if there were claims for any export incentive. 18. The DGFT, who is responsible for formulating the policies for grant of VKGUY benefit and also responsible for grant of such benefit, should know best the purpose for making such declaration. This Tribunal can only make a guess as to what is the purpose. The purpose can be two fold, namely,- (i) to ensure that customs authorities make special examination of the goods to make sure that the goods exported are as per the description of goods for which the benefit is notified. If there is any special characteristic relevant for granting such benefit like total weight or any other quality which is relevant is ascertained by inspection of the goods and its verification by tests if required. (ii) To have a record of past imports and different types of claims made by any exporter and to enable compilation of statistics about the shipping bills against which such claims are made. 19. In this matter it is for DGFT to consider whether the non-declaration of the claim at the time of export is fatal to the claim. If it is not considered fatal that authority may grant the benefit notwithstanding the absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersion of free shipping bills into Advance Licence/ DEPB/DFRC shipping bills should not be allowed. As regards permitting conversion of shipping bills from one export promotion scheme to another is concerned, it is clarified that such conversion should only be allowed where the benefit of an export promotion scheme claimed by the exporter 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 or DEPB Schedule as the case may be. (d) On the basis of S/Bill/export documents the exporter is fulfilling all conditions of the Export Promotion Scheme into which he is seeking conversion. (e) The exporter has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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