Whether conversion of shipping bill to another incentive scheme permissible after export of goods?

PJ/CASE LAW/2015-16/2764

Case:- COMMISSIONER OF CUSTOMS VERSUS ONASSIS AUTO PRODUCTS PVT. LTD.

Citation:- 2015(315) E.L.T. 616(Tri.- Del.)

Brief Facts:- The Commissioner misconstrued the provision of section 149 of the Act as well as the Board circular No. 4/2004- Cus. Dated 16-1-2004 and entertained undue request of the exporter under a misplaced sympathy. When the goods left India under certain declaration in shipping bill mentioning an incentive scheme and such declaration met scrutiny of customs from that angle at the time of clearance, no belated switch over to a different scheme is permitted by law.

Appellant’s contention:-Revenue submits that there is no law to allow conversion of shipping bills from one promotion incentive scheme to another after goods are exported . ld. Commissioner (Appeals) has not at all looked into the guideline issued by Board Circular No. 4/2004-cus., dated 16-1-2004 and provision of Section 149 of Customs Act is exercisable while the goods are in the custody of the Customs since amendment to the bill of entry or shipping bills after clearance of goods is prohibited in terms of provision to that section.

Respondent’s Contention:-Declaration of appropriate incentive scheme by exporter in the shipping bills at the initial stage of presentation is necessity of law to meet scrutiny of Customs before export. A belated claim of different incentive scheme against export done cripples the applicant to seek such change. Appellant has entrained to another incentive scheme by conversion of shipping bills accordingly provision to section 149 of Customs Act. Therefore provision to section 149 of the Act has mandate not to entertain any amendment to the scheme after export.

Reasoning of Judgment:- Tribunal held that as per Board’s Circular No. 4/2004-Customs, dated 16-1-2004 and according in the present case, belated request for conversion of incentive scheme is not entertainable in law.

Decision:- Appeal allowed.

Comment:-The analogy of this case is that importer cannot opt for conversion of shipping bill from one incentive scheme to another incentive scheme after clearance of goods for export because there is restriction for the same in Board’s Circular 4/2004 Customs dated 16-1-2004.

Prepared by: Bharat Singh

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PJ/CASE LAW/2015-16/2764

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