Denial of Conversion of DFRC Shipping bills into DEEC Scheme without Considering Relevant Provision : CESTAT Directs to Allow Conversion [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed the adjudicating authority to allow the conversion of Duty-Free Replenishment Certificate (DFRC) shipping bills into Duty Exemption Entitlement Certificate (DEEC) scheme on the ground of nonconsideration of the relevant provision of law. 

Vinny Royal Plasticoates Pvt Ltd, the appellant assessee appealed against the order passed by the adjudicating authority for denying the request for conversion of DFRC to DEEC. 

Devan Parikh and Nirav Shah, the counsels for the assessee contended that the goods were moved after factory stuffing from the premises of Royal Vinyl Plasticoates Pvt. Ltd and only even in the shipping bills as per the declaration contained in the body of the shipping bill they were the supporting manufacturer as per policy. 

Further submitted that the denial of amendment in the existing scheme was not as per the law and liable to be deleted. 

Anand Kumar, the counsel for the revenue contended that the assessee being a supporting manufacturer could not have claimed the conversion from one scheme to another. 

The bench observed that the request of the appellant to allow amendment sought by them after examination of the availability of relevant license etc. at the time of export and to direct consequent benefit as sought by the assessee considering that only one benefit will be permitted and also to only one person i.e. supporting manufacturer or merchant exporter was valid. 

The two-member bench comprising Somesh Arora (Judicial) and Raju (Technical) held to remand the matter back to the original authority to implement the same by allowing amendment as per law. 

To Read the full text of the Order CLICK HERE

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