No Time Limit for Amending Scheme Codes in Shipping Bills During Transition Period: CESTAT Sets Aside Rejection of Request, Allows Appeal [Read Order]

The Customs, Excise and Service Tax AppellateTribunal (CESTAT), Mumbai Bench, allowed an appeal and held that the rejection of a request for amendment of Shipping Bills (S/Es) with respect to scheme codes was illegal as transition period of schemes has no time limits for requesting amendments or corrections to S/Es. CESTAT set aside the rejection order.

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The facts of the case are that the appellant, Sigma Exports, is an exporter falling under Chapter 63 of the Customs Tariff Act, 1975. To claim rebate under the ‘Duty Drawback Scheme’, an exporter was required to make such a claim by declaring it in the S/B at the item level. The appellants were claiming it with Merchandise Exports from India Scheme (MEIS) benefits during 08.03.2019 to 07.05.2020 and filed S/B indicating exports under scheme code “19” instead of the correct code “60” which was relevant to the Rebate of State and Central Taxes and Levies (RoSCTL) introduced vide Notification No. 14/26/2016-IT (Vol.II) dated 07.03.2019.

The request that the appellants applied for, for obtaining permission in amending 147 S/Bs in terms of Section 149 of the Customs Act, 1962 was rejected as it was time barred in terms of CBIC Circular No. 36/2010 dated 23.09.2010. When appealed to the Commissioner (Appeals), the same was rejected due to being beyond the jurisdiction of the First Appellate Authority.

The tribunal, when approached, remanded the matter for reconsideration but seeing no change despite accounting for merits, has been approached again. The counsel for the appellants submitted that non-compliance of procedure cannot be a ground to deny substantial benefits and the same was improper by law.

CESTAT observed that time limits would not be applicable in the present case. Further, the finding of Commissioner of Customs for rejecting the request on the ground that the appellants may avail the benefits of MEIS scheme which has not been examined is contrary to various circulars and is improper as per the procedure prescribed by the Directorate General of Foreign Trade (DGFT) in Public Notice dated 29.10.2020.

The bench of S.K. Mohanty (Judicial Member) and M.M. Parthiban (Technical Member) finally opined that that the rejection of the request for conversion of the scheme code in the S/Bs from ‘Drawback’ scheme having Scheme code No. “19” to other scheme of ‘Drawback & RoSCTL’ having Scheme code No. “60”, is liable to be set aside, as the same does not stand the legal scrutiny. Accordingly, the appeal was allowed.

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