Case Law Details
Stallion Laboratories Pvt Ltd Vs C.C.-Ahmedabad (CESTAT Ahmedabad)
Once a export benefit under which shipping bill was filed has been availed, the conversion to any other scheme cannot be allowed as either draw back scheme benefit could be availed or advance license benefit could be availed and not both
Stallion Laboratories Pvt Ltd Vs C.C.-Ahmedabad (CESTAT Ahmedabad) involved a dispute regarding the conversion of shipping bills from one export scheme to another. The appellants, exporters of pharmaceutical products, had filed 38 shipping bills under the claim of drawback between 2017 and 2021. Additionally, they were procuring raw materials under the advance license scheme and exporting processed materials to fulfill their export obligations under the advance license scheme.
The appellants approached the Directorate General of Foreign Trade (DGFT) to reckon their exports made under the drawback scheme towards the advance license scheme, but their request was rejected. Subsequently, after almost two years or more from the exports and after availing drawback benefits, they approached Customs authorities to convert the drawback benefits to advance license benefits by offering to pay interest.
The appellant’s consultant relied on various judgments, including the case of Nissan Exports vs CC Mundra, to argue for the conversion, citing instances where amendments to shipping bills were permitted even after a significant period. However, the authorized representative for the Customs department sought to uphold the original order, highlighting the findings contained in the impugned order.
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