The Chennai Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that the rejection of request for conversion of free shipping bills to advance authorization scheme shipping bills are not justified.
The appellant, M/s. Carboline India Pvt. Ltd. had exported goods in the nature of “Paint for fire proofing THERMO Lag 3000 SP” vide two shipping bills. They had obtained advance authorization license for import of raw materials with an obligation to export manufactured goods in the nature of “Paint for Fire Proofing”. They had exported these goods under shipping bills.
However, the code mentioned in the shipping bills was “00” instead of mentioning the scheme code as “01”. They requested for conversion of the free shipping bills to advance authorization shipping bills. The request was rejected by the Commissioner on the basis of the Board Circular No. 36/2010 dated 23.9.2010.
The appellant has received the export proceeds in FOREX in respect of both the shipping bills. The BRCs also have been furnished. As per the Handbook of Procedures / Foreign Trade Policy, the advance authorization holder is required to maintain the consumption register in form Appendix 4H and submit a certified copy of the same for obtaining necessary EODC from the licensing authority. Since all the documents are clear with regard to the goods exported, the rejection for request of conversion of free shipping bills on the ground that the goods have not been physically examined has caused much injustice to the appellant.
The coram of Sulekha Beevi C.S. has held that the appeal filed by the department was dismissed upholding the decision taken by the Tribunal allowing conversion of the shipping bills.
“After appreciating the facts, evidence and also following the judgments cited above, I am of the view that the rejection of request for conversion of free shipping bills to advance authorization scheme shipping bills are not justified. The impugned order is set aside. The appeal is allowed with consequential relief, if any,” the CESTAT said.
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