Case Law Details
Lovy International Vs Commissioner of Customs (Export) (CESTAT Delhi)
The case of Lovy International versus Commissioner of Customs (Export) (CESTAT Delhi) revolves around the denial of benefits under the Drawback and ROSCTL Scheme due to a procedural lapse. Lovy International challenged the rejection of their application for conversion of Shipping Bills from Drawback to Drawback and ROSCTL, citing a clerical error by their Customs Broker.
The appellant, Lovy International, had cleared consignments of various items, including Ladies Readymade Garments, cotton bags, and Jute Bags, under different Shipping Bills. Due to a clerical error by their Customs Broker, the Shipping Bills were filed under the Drawback Scheme instead of Drawback and ROSCTL Scheme, despite marking ‘Y’ for ROSCTL scheme eligibility. The error was discovered when filing for a license with DGFT, prompting Lovy International to apply for conversion on 21st January 2021.
However, the Commissioner of Customs rejected the application citing a three-month time limit prescribed by CBEC Circular No. 36/2010-Cus. Lovy International argued that Section 149 of the Customs Act doesn’t specify any time limit for such conversions and challenged the rejection.
CESTAT Delhi analyzed the case, considering previous judgments and statutory provisions. It noted that ROSCTL replaced MEIS, and the appellant’s error seemed genuine given the scheme transition. The delay in filing for conversion wasn’t significant, and the documents supporting eligibility were submitted promptly after discovering the error.
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