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Judgment
This appeal is presented by the Revenue, challenging the Final Order No.20203/2016 dated 3.2.2016, passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bengaluru (for short ''Tribunal''), on the ground that the following question of law arises for consideration:-
"Whether on the facts and in the circumstances of the case, the CESTAT was right in directing conversion of free shipping bills into DEEC shipping bills in contravention of Section 149 of the Customs Act 1962 read with CBEC Circular No.36/2010 - Customs dated 23/9/2010 and recorded perverse finding?"
We have heard Shri K.V.Aravind, learned standing Counsel for the appellant, Shri K.Parameshwaran, learned Counsel for the respondent and perused the records.
Briefly stated the facts of the case are, the respondent engaged in the manufacture of Human Rabies Vaccine obtained Advance Authorisation by the Joint Director General of Foreign Trade, Hyderabad, permitting import of various items valued at CIF US$11,41,518.92 (Rs. 7,28,06,937.69) with a condition that the respondent shall manufacture Human Rabies Vaccine and export a quantity of 8,00,000 vials valued FOB at US$31,84,000 (Rs. 19,97,96,000/-).
The respondent filed five DEEC declarations along with invoices and supporting documents in discharge of export obligation against the advance authorization. However, due to technical problems in the Indian Custom EDI System, export promotion shipping bills could not be generated. The screenshot indicated that shipping bills could not be generated as ''no records were found for licence No.0910057931''. In such circumstances, the clearing house agent was unable to obtain permission to file DEEC shipping bills manually. Nonetheless, the respondent was compelled to export the consignment which had already reached the port under ''free shipping bills'' as the vaccine was required to be stored at a temperature of 2-8 degree centigrade.
After the export, the respondent approached the Deputy Commissioner for conversion of ''free shipping bills'' into ''export promotion shipping bills'' and the same was rejected. An appeal filed thereon, before the Commissioner (Appeals) was also rejected. The respondent thereafter approached the Tribunal.
The Tribunal, following the earlier decision in Gennex Laboratories Ltd. Vs. CC, Hyderabad [2012 (285) E.L.T. 363 (Tri.-Bang.)] and one another decision in Kiran Pondy Chems Ltd. vs. CC, Chennai [2006 (203) E.L.T. 588], allowed the appeal, holding that, the facts on record, particularly the documents and declarations available at the time of export supported the case of the respondent and the fault lied with the EDI system of the customs. Accordingly, the Tribunal directed the authorities to accept the respondent''s request for conversion of shipping bills.
It is not in dispute that the respondent is a manufacturer and exporter of Human Rabies Vaccine. The Tribunal has recorded a finding that fault lied with the EDI system. The Board Circulars are issued to ensure that standard operating system is followed. Here is a case where, technical error had crept in the computer system, which prevented generation of shipping bills.
Therefore, in our considered view, there is no infirmity in the impugned order passed by the Tribunal. The order under challenge is based on appreciation of facts and no substantial question of law arises for consideration.
Resultantly, this appeal must fail and is accordingly dismissed.
Incidentally, we may record that the respondent shall be at liberty to place all the materials in support of its claim, which it sought to produce in this Court, before the authority for consideration of its case as directed by the Tribunal.
In view of dismissal of the appeal, I.A.2/2017 does not survive for consideration and it is disposed of accordingly.
We make no order as to costs.
Appeal dismissed.