The Chennai bench of the Customs, Excise & Service Tax Appellate Tribunal(CESTAT) dismissed the appeal filed by the revenue department alleging that the commissioner failed to follow the examination of norms prescribed under the CBEC circular for allowing conversion of shipping bill. The Tribunal found that the Commissioner and the review committee have properly followed the norms prescribed under the said Circular.
The respondent, M/s.Contemporary Leather Private Limited had requested for conversion of Free Shipping Bills to Drawback Shipping Bills concerning the exports made by them for the period from 2013-14 to 2016-17. The request was rejected. The respondent filed an appeal before the Tribunal.
As per the Final Order, the Tribunal allowed the appeal observing that the request for conversion of the shipping bills falling within three years when computed from the application i.e., 23.11.2021, is to be allowed. The adjudicating authority was directed to verify as to whether any shipping bill is filed beyond the limitation period of three years as stated in the decision of the Tribunal in the case of M/s.Autotech Industries (India) Pvt. Ltd.
The matter was taken up by the Principal Commissioner of Customs and the present impugned order was passed wherein the conversion of 342 numbers of free shipping bills to drawback shipping bills falling within three years from the date of application was allowed.
The Tribunal while allowing the appeal and directing to verify failed to take into consideration that as per Section 149 of the Customs Act, 1962 read with CBEC Circular No.36/2010 dated 23.09.2010, conversion of shipping bills from schemes that involve more rigorous examination (or) within the schemes involving same level of examination is not permitted.
Moreover, the request for conversion should have been made by the exporter within three months from the date of the Let Export Order (LEO) for which only the Commissioner is empowered to examine the request for conversion of shipping bills on merits. It was argued that the examination norms prescribed under CBEC Circular No.6/2002 dt. 23.01.2002 has not been followed by the Commissioner while allowing the conversion of shipping bills.
Shri R. Ravikumar appeared and argued for the respondent. It was submitted that the Adjudicating Authority (Principal Commissioner) has passed the order under the Final Order passed by the Tribunal. The Department has not filed any appeal against said Final Order dt. 30.09.2021 passed by the Tribunal.
A single bench of Ms Sulekha Beevi C S, Member (Judicial) observed that the Review Committee has put forward grounds challenging the Final order passed by the Tribunal dt. 30.09.2021 directing the adjudicating authority to verify and allow the conversion of shipping bills. When the order passed by the department denying the request for conversion has been set aside by the final order dt. 30.09.2021 passed by the Tribunal, the only remedy available for the department is to file an appeal against such an order before the Higher Forum.
The Tribunal while passing the Final order has already taken into consideration the Board’s circular as well as the decisions passed on the very same issue. The Commissioner has correctly followed the direction of the Tribunal and passed the impugned order.
The CESTAT held that “the matter does not involve any duty, penalty fine, or confiscation of goods and it falls below Rs.50 lakhs and therefore falls under the new Litigation Policy concerning Customs cases to be filed before the Tribunal. The appeal falls within the monetary limits of litigation policy.” The CESTAT dismissed the Appeal filed by the Department.
(Dictated and pronounced in court)
sd/-
(SULEKHA BEEVI C.S.)
Member (Judicial)
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