Case Law Details
Indian Oil Corporation Ltd Vs Commissioner of Customs Acc (Export) (CESTAT Delhi)
Conclusion: IOCL was not entitled for the conversion of DEEC shipping bills to drawback shipping bills since it was barred by limitation and was rightly rejected by the competent authority and for the reason for non-filing of the requisite documents in terms of Section 149 of the Customs Act as well as the Circular.
Held: IOCL was registered with the Central Excise Department as Export Warehouse for supply of Excise Bonded Aviation Turbine Fuel (ATF) to aircrafts on foreign run and filed DEEC Shipping Bills with effect from 16.07.2010 against Advance Authorization / Licence obtained by them from DGFT as per Foreign Trade Policy 2009 – 2011. That IOCL made an application under section 149 of the Customs Act, 1962 requesting for conversion of the DEEC shipping bills to drawback shipping bills on the ground that due to abolition of customs duty on crude oil with effect from 25.06.2011 they could not avail duty free import benefit of ATF exported by them during the period October 2010 to August 2011. The request of IOCL in terms of the aforesaid applications for conversion of DEEC shipping bills to drawback shipping bills to avail duty drawback was examined in terms of the provisions of section 149 of the Customs Act read with the CBEC’s Circular No. 36 / 2010-Cus dated 23.09.2010, however the same were found to be time-barred and were accordingly rejected vide order dated 15.02.2012. It was contended by assessee that the application for conversion of shipping bills could not be rejected on the ground of limitation as Section 149 of the Customs Act which provided for amendment of the shipping bill did not prescribe any limitation and therefore the period of 3 months specified in the circular was beyond the scope of Section 149. It was held that assessee was not entitled to the conversion of the DEEC shipping bills to Drawback shipping bills since the appellant failed to apply within the time limit of 3 months and also filing the requisite documents. The violation of the above two conditions of making the application within the time limit of 3 months and also filing of the requisite documents, assessee was not entitled for conversion of the DEEC shipping bills to Drawback shipping bills. The benefit of conversion from one export promotion scheme to another was by virtue of the circular so the assessee could not say that they were entitle to claim the benefit under the circular but at the same time they were not required to comply with the conditions stipulated therein. Assessee could not pick and choose the terms of the circular. Tribunal relied on the decision in M/s Terra by the Delhi High Court and held that the appeal filed by assessee was barred by time and was rightly rejected by the competent authority and for the reason for non-filing of the requisite documents in terms of Section 149 of the Customs Act as well as the Circular. .
FULL TEXT OF THE CESTAT DELHI ORDER
The appellant, M/s Indian Oil Corporation (hereinafter referred to as the IOC) has filed the present appeal challenging the order of the Commissioner Custom, Air Cargo Export dated 18.6.2012 whereby the request of the IOC for conversion of DEEC Shipping Bills to Drawback Scheme was rejected.
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