Carl Zeiss India (Bangalore) Pvt. Ltd. Vs Commissioner of Customs (CESTAT Bangalore)
This article explores the case of Carl Zeiss India (Bangalore) Pvt. Ltd. vs. Commissioner of Customs (CESTAT Bangalore), decided by the Madras High Court. The case deals with the conversion of shipping bills from a drawback scheme to an advance authorization scheme under Indian customs regulations.
Background:
- Carl Zeiss India, a manufacturer and exporter of spectacle lenses and industrial metrology equipment, held five advance authorizations from 2004 to 2016.
- During this period, the company inadvertently failed to endorse the advance authorizations on some shipping bills and opted for the drawback scheme instead.
- In 2020, Carl Zeiss sought to convert the affected shipping bills to the advance authorization scheme, but the authorities rejected their request due to a time limit in a circular.
Carl Zeiss India’s Arguments:
- The company argued that the time limit in the circular was not legally binding and should not prevent their request.
- They claimed genuine reasons for the delay and provided documentary evidence to support their claim to the benefits of the advance authorization scheme.
- Carl Zeiss cited previous court judgments allowing similar conversions outside the time limit in specific circumstances.
Authorities’ Arguments:
- The authorities relied on the circular’s time limit to justify their decision.
- They questioned Carl Zeiss’ diligence in maintaining records, citing some discrepancies discovered during the process.
Court’s Judgment:
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