Customs Act | No Time Bar For Shipping Bill Conversion Under Section 149: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed an appeal filed by the Customs Department against ADF Foods Ltd., holding that exporters can seek conversion of shipping bills from one export incentive scheme to another even after several years, as long as the law does not prescribe any time limit. A Bench comprising Dr. Suvendu...
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed an appeal filed by the Customs Department against ADF Foods Ltd., holding that exporters can seek conversion of shipping bills from one export incentive scheme to another even after several years, as long as the law does not prescribe any time limit.
A Bench comprising Dr. Suvendu Kumar Pati (Judicial Member) and M.M. Parthiban (Technical Member) upheld the earlier relief granted to the exporter and confirmed that the Revenue could not reopen the issue once it had already been settled by the Tribunal.
The assessee, ADF Foods Ltd. had earlier requested conversion of its shipping bills from the Duty Drawback Scheme to the DFIA (Duty Free Import Authorisation) Scheme. The Customs Commissioner had allowed conversion only for shipping bills relating to a three-year period, rejecting the rest on the ground that they were time-barred under the Limitation Act.
The assessee challenged this before the Tribunal, which had earlier ruled in favour of the exporter and allowed conversion for the entire period of about 10 years, holding that no limitation period applies.
Despite this, the Customs Department filed a fresh appeal challenging even the three-year conversion earlier allowed by the Commissioner.
The CESTAT rejected the Revenue's appeal and held that the Limitation Act does not apply to requests made before customs authorities or tribunals unless the law specifically provides a time limit.
The Bench held that Section 149 of the Customs Act, which deals with amendment or conversion of shipping bills, does not prescribe any time limit for seeking such conversion.
The Bench ruled that Article 137 of the Limitation Act, 1963, does not apply to conversion requests under Section 149, as no specific time limit exists in the Customs Act and post-export verification relies on documentary proof. The Bench also applied the doctrine of merger, noting its prior order, validated conversions for over 10 years, including the three-year period allowed by the Commissioner.
The Bench held that Revenue was also barred by principles of res judicata, as it had participated in earlier proceedings and accepted part of the relief.
It held that restrictions in Circular No. 36/2010, such as Clause 3(e) barring conversions after availing export promotion benefits, were deemed invalid as they contradict Section 149.
The Bench observed that conditions imposed through departmental circulars cannot override the clear wording of the Customs Act.
The Bench reiterated that exporters can convert shipping bills from one incentive scheme to another, provided they reverse any benefits already taken, along with applicable interest.
In view of the above, the Bench dismissed the Revenue's appeal and confirmed that the assessee is entitled to conversion of its shipping bills, including those covering the earlier three-year period allowed by the Commissioner, as part of the larger relief already granted.
Case Title: Commissioner of customs, Nhava Sheva-II Vs. ADF Foods Ltd.
Case No.: Customs Appeal No. 87408 of 2025
Appearance for Appellant: Shri Krishna Azad, Assistant Commissioner
Appearance for Respondent: Shri Mihir Mehta with Shri Mohit Raval