Legal principle

A request to amend a shipping bill under section 149 of the Customs Act, 1962 should be permitted unless established evidence exists that the goods were not in conformity with the details furnished in the shipping bill, and requirements lacking statutory force (such as the 'Y'/'N' MEIS declaration) cannot be the basis for denying such amendment.

Court decision

The Tribunal allowed the appeal insofar as the bills pertained to the respondent-Commissioner's jurisdiction and directed that the 'N' in those bills be amended to 'Y' to enable the DGFT to discharge its responsibility under the scheme. It held that the 'Y'/'N' option is not statutorily mandated — flowing only from the Handbook of Procedures (bereft of force of law) and circular 14/2015-Cus without authority from section 50 — so the proviso in section 149 on documentary evidence was of no consequence, and the time-bar and evidence objections could not sustain the denial; it also deprecated the adjudicator's remarks on the appellant's 'attitude' while accepting that the five out-of-jurisdiction bills were correctly excluded.

Facts

M/s Jindal Drugs Pvt Ltd exported 'anethole pure' and 'cineole pure' under shipping bills, of which 55 (out of 845 filed in the period) inadvertently carried 'N' instead of 'Y' against the declaration of intent to claim rewards under the Merchandise Exports from India Scheme (MEIS), with the result that the export data was not transmitted to the DGFT for processing of rewards. The exporter applied under section 149 of the Customs Act, 1962 to amend 'N' to 'Y' in those bills. The Commissioner of Customs (NS-II), Nhava Sheva, by order dated 1 December 2021, rejected the request as time-barred under clause 3(a) of Circular 36/2010 dated 23.09.2010 read with section 149 and for want of documentary evidence existing at the time of export, while also criticising the appellant's 'lackadaisical attitude' in respect of five bills outside his jurisdiction. The appeal reached the Tribunal after the Bombay High Court, by order dated 16 November 2021, directed disposal of the exporter's representation in accordance with law.

Key provisions

• Section 149, Customs Act, 1962 — Amendment of documents
• Section 50, Customs Act, 1962 — Entry of goods for exportation
• Section 51, Customs Act, 1962 — Clearance of goods for exportation
• Section 25, Customs Act, 1962 — Power to grant exemption from duty
• Section 46, Customs Act, 1962 — Entry of goods on importation
• Section 151A, Customs Act, 1962 — Instructions to officers of customs
• Section 2, Customs Act, 1962 — Definitions
• Section 75, Customs Act, 1962 — Drawback on imported materials used in the manufacture of goods which are exported
• Section 154, Customs Act, 1962 — Correction of clerical errors etc