Case Law Details
Principal Commissioner of Customs (ACC) Vs Contemporary Leather Pvt. Ltd. (CESTAT Chennai)
Introduction: The recent case of “Principal Commissioner of Customs vs. Contemporary Leather Pvt. Ltd.” heard by CESTAT Chennai delves into allegations of failure to adhere to examination norms prescribed under CBEC Circular during the conversion of shipping bills. The appeal, filed by the Department, was dismissed by the Tribunal, prompting a closer examination of the underlying issues.
Detailed Analysis: The dispute arose when M/s. Contemporary Leather Private Limited sought the conversion of Free Shipping Bills to Drawback Shipping Bills for exports made between 2013-14 and 2016-17. Despite the rejection of the initial request, the Tribunal, in Final Order No.42456/2021, allowed the appeal. The Tribunal directed the adjudicating authority to verify the timeline and specified criteria, as seen in the case of M/s. Autotech Industries (India) Pvt. Ltd.
In response, the Principal Commissioner of Customs passed an order allowing the conversion of 342 free shipping bills to drawback shipping bills within a three-year period. The Department, aggrieved by this decision, filed an appeal, asserting non-compliance with Section 149 of the Customs Act, 1962, and CBEC Circular No.36/2010.
During the proceedings, the Department argued that the Tribunal overlooked crucial aspects, including the examination norms outlined in CBEC Circular No.6/2002 and the time frame for conversion requests. The Commissioner’s decision, according to the Department, did not align with statutory provisions.
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