Conversion of shipping bill from DEEC to DEPB Scheme.

PJ/CASE LAW/2015-16/2572

Case:-UNI DERITEND LTD. VERSUS COMMR. OF CUS. (EXPORT), MUMBAI

Citation:-2014(306) E.L.T. 669 (TRI.-MUMBAI)

Brief Facts:-The appellants are in appeal against the impugned order denying conversion of shipping bills filed for obligation under the EPCG scheme to DEPB scheme.

Appellant Contentions:- The learned Counsel for the appellant submits that conversion has been denied by relying on the Board’s Circular No. 4/2004-Cus., dated 16-1-2004 and the provisions to the Section 149 of the Customs Act, 1962. In fact, as per the Board’s Circular No. 36/2010-Cus., dated 23-9-2010, the provisions were liberalized. Therefore, they are entitled for conversion. To support his contention he placed reliance in the case of Diamond Engineering (Chennai) Pvt. Ltd. v. CC, Chennai - 2013 (288) E.L.T. 265 (Tri.-Mad.).

Respondent Contentions:-On the other hand the learned AR strongly opposed the contention of the learned Counsel and submits that in the shipping bills the appellant has not mentioned the PMV therefore, the adjudicating authority has rightly denied the conversion of the shipping bills from EPCG scheme to DEPB scheme. To support his contention he placed reliance on the decision of this Tribunal in the case of Actavis Pharma Manufacturing Pvt. Ltd. v. CC, Chennai - 2012 (279) E.L.T. 517 (Tri.-Chennai).

Reasoning of Judgment:-Considered the submissions made by both the sides.
The case law relied on by the learned AR is not relevant to the facts of this case as in that case free shipping bill was filed by the assessee and requested for conversion of the said free shipping bill to DEPB shipping bill. Therefore, this Tribunal arrived at a decision as there was no declaration of PMV by the assessee therefore, conversion was not allowed. But in the case of Diamond Engineering (Chennai) Pvt. Ltd.(supra) this Tribunal has examined the decision of Actavis Pharma Manufacturing Pvt. Ltd.(supra) relied upon by the learned AR and considered the fact of the case are not similar as in that case shipping bills were filed for the conversion of the shipping bills from Advance Licence Scheme to DEPB Scheme. In this case the facts are of similar to the facts of Diamond Engineering (Chennai) Pvt. Ltd. As the assessee sought conversion from DEEC scheme to DEPB scheme and examination level in both the situation are similar. Therefore, on the basis of the document produced at the time of export the adjudicating authority should have allowed the conversion. As those documents have not been examined by the adjudicating authority therefore, the matter needs examination at the end of the adjudicating authority to verify the fact that for conversion from EPCG scheme to DEPB scheme the export documents are sufficient to grant conversion or not. The adjudicating authority is directed to act accordingly and pass an appropriate order in accordance with law.
The appeal is allowed in these terms by way of remand.

Decision:-Appeal Allowed.

Comment:-The crux of this case is that free shipping bill cannot be converted into DEBP shipping bill if there is no declaration of PMV as held in the case of Actavis Pharma Manufacturing Pvt. Ltd. However, in the present case, assessee sought conversion of Shipping Bill from DEEC to DEPB Scheme and therefore adjudicating authority should have allowed the conversion for the same because the conversion was allowed in the case of Diamond Engineering (Chennai) Pvt. Ltd.

Prepared by: Hushen Ganodwala

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PJ/CASE LAW/2015-16/2572

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