Legal principle

Under Section 149 of the Customs Act, 1962, a shipping bill may be amended or converted even after export if supported by documentary evidence in existence at the time of export, and a circular's self-imposed time limit or the absence of physical examination cannot defeat this statutory power.

Court decision

The Tribunal held the impugned order unsustainable, ruled that this was 'a fit case in which conversion under Section 149 should have been permitted', and allowed the appeal in favour of the exporter (Final Order No.70136/2024 dated 14.02.2024).

Facts

M/s Yash Pakka Ltd., a manufacturer-exporter of paper and paper products (Chapter 48), filed free shipping bills for exports made between 01.07.2017 and 01.08.2018 (the GST transition period), claiming confusion, while claiming and receiving duty drawback on identical exports both before and after this period. In December 2019 it requested conversion of these free shipping bills into drawback shipping bills under Section 149 of the Customs Act, 1962. The Commissioner of Customs (Preventive), Lucknow rejected the request, initially without a hearing; on CESTAT remand he again rejected it in Order-in-Original No.01/Tech/2023 dated 13.12.2023, also holding that All Industry Rate drawback could not be allowed without conversion in terms of Para 4 of Circular No.36/2010-Cus, and relied on Rule 13(1)(a) of the Drawback Rules, 2017. The exporter appealed to CESTAT, Allahabad.

Key provisions

• Section 149, Customs Act, 1962 — Amendment of documents
• Rule 13(1)(a), Customs and Central Excise Duties Drawback Rules, 2017 — Statement/Declaration to be made on exports other than by Post
• Section 75, Customs Act, 1962 — Drawback on imported materials used in the manufacture of goods which are exported
• Rule 12(1)(a), Customs, Central Excise Duties and Service Tax Drawback Rules, 1995 — Statement/Declaration to be made on exports other than by Post
• Section 128, Customs Act, 1962 — Appeal to Commissioner (Appeals)
• Section 74, Customs Act, 1962 — Drawback allowable on re-export of duty-paid goods
• Section 28, Customs Act, 1962 — Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded
• Section 154, Customs Act, 1962 — Correction of clerical errors etc
• Section 61(3), Customs Act, 1962 — Period for which goods may remain warehoused
• Section 129A(1), Customs Act, 1962 — Appeals to the Appellate Tribunal
• Section 27, Customs Act, 1962 — Claim of refund duty
• Section 27A, Customs Act, 1962 — Interest of delay refunds