Commissioner of Customs Vs ADF Foods Ltd. (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal Mumbai dismissed the Revenue’s appeal challenging the Commissioner’s order that had permitted conversion of shipping bills for a three-year period from one export promotion scheme to another. The background showed that the exporter’s request for conversion covering about ten years had earlier travelled to the Tribunal, which on 26.06.2025 decided the matter in favour of the exporter. The Tribunal had held that Article 137 of the Limitation Act, 1963 did not apply to conversion requests under Section 149 of the Customs Act, 1962, as proceedings before quasi-judicial authorities are not governed by the Limitation Act unless expressly provided. Since Section 149 prescribes no time limit and allows conversion based on documentary evidence, the imposition of a three-year restriction was found unsustainable.
In its subsequent order dated 17.07.2025, the Tribunal reiterated that neither Section 29(2) nor Article 137 of the Limitation Act could be imported into Section 149 proceedings. It further rejected departmental reliance on Clause 3 of Circular No. 36/2010-Cus., noting that such conditions were neither part of Section 149 nor earlier challenged by the Department when the Commissioner allowed conversion for three years, subject to reversal of drawback with interest. Judicial precedents were cited to confirm that conversion from drawback to DFIA scheme is permissible upon reversal of benefits.
