Crown Milk Specialities Private Limited Vs Commissioner of Customs (CESTAT Chandigarh)
The case of Crown Milk Specialities Private Limited Vs Commissioner of Customs (CESTAT Chandigarh) pivots around the conversion of shipping bills from Drawback to DEPB Scheme. The primary point of dispute was whether the shipping bills filed under the Drawback Scheme could be converted to the DEPB Scheme as per the Customs Act, 1962. The case provides crucial insights into the legal framework governing export schemes and elucidates the scope of shipping bill conversions.
Background: Crown Milk Specialities Pvt Ltd is engaged in the manufacture of Milk Products and exported its products to Germany. The company initially filed shipping bills under the Drawback Scheme with a 1% drawback rate. Later, it realized that it was entitled to export under the DEPB Scheme at a rate of 9%.
Rejection by Lower Authorities: The initial application for conversion was rejected by the authorities, relying on the older Circular No. 04/2004 dated 16.01.2004. This decision was further upheld by the Ld. Commissioner (Appeals) of Central Excise, Customs, Chandigarh.
Appeal and New Circular: In the appeal, it was pointed out that the Circular No. 04/2004 dated 16.01.2004 had been substituted by Circular No. 36/2010 dated 23.09.2010, which permits conversion from one scheme to another. Moreover, both the schemes have similar levels of examination.
Court’s Observations: The court noted that the request for conversion was within six months, which was not unreasonable. It also highlighted that the condition of a three-month limit had been set aside by the Jurisdictional High Court of Punjab and Haryana, making it permissible to convert shipping bills from one scheme to another under Section 149 of the Customs Act, 1962.
Key Precedents: The court relied on multiple cases to make its decision, most notably Commissioner of Customs Vs. Mrs. Bectors Food Specialities Ltd., establishing the ground for allowing conversion under the newer circular.
Conclusion: The case of Crown Milk Specialities Pvt Ltd Vs Commissioner of Customs serves as a seminal reference for understanding the scope and limitations of converting shipping bills from one export scheme to another. The court set aside the impugned order, thereby permitting conversions, which serves as a precedent for similar cases. This decision underscores the importance of staying updated with recent circulars and understanding their implications for legal procedures related to shipping bills and export schemes.
FULL TEXT OF THE CESTAT CHANDIGARH ORDER
The present appeal is directed against the impugned order dated 20.04.2011 passed by the Ld. Commissioner (Appeals) of Central Excise, Customs, Chandigarh whereby the Ld. Commissioner (Appeals) has rejected the appeal of the appellant for conversion of shipping bills from one scheme to another i.e. from drawback of DEPB Scheme.
2. Briefly the facts of the case are that the appellant is engaged in the manufacture of Milk Products and they have exported their products to Germany by various shipping bills. The details of shipping bills and the date of export are given herein below:-
