CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 2 Customs Appeal No. 20282 of 2022 Customs Cross Objection No. 20213 of 2022 (Arising out of Order-in-Original No. 1235/2021 dated 25.11.2021 passed by the Commissioner of Customs, Bengaluru.)

Commissioner of Customs, Airport & ACC Commissionerate, Bengaluru. ……….Appellant(s)

VERSUS M/s. Bharat Electronics Ltd.

Jalahallli Post, Bangalore – 560 013. ……..Respondent(s)

APPEARANCE:

Mr. Maneesh Akhoury, Asst. Commr. (AR) for the Appellant Mr. Sreemannarayana. B, AGM for the Respondent.

CORAM:

HON'BLE MR. P.A. AUGUSTIAN, MEMBER (JUDICIAL)

HON'BLE MR. PULLELA NAGESWARA RAO, MEMBER (TECHNICAL)

Final Order No. 20455 /2026 Date of Hearing: 01.12.2025 Date of Decision: 30.03.2026 PER: P.A. AUGUSTIAN The issue in the present appeal is regarding request for amendment of shipping bills after export of goods.

2. The brief facts are the Respondent is a Government of India undertaking and engaged in manufacture of sophisticated electronics and communication equipment. In order to meet the requirement of Armed Force in India, they have carried out Defence production and also export of various electronics equipment. There were some shipping bills filed by the Respondent to claim MEIS but inadvertently had not claimed the duty draw back. This error according to Respondent happened due to inadvertent clerical mistake even though intended to claim the duty draw back. The exporter vide letter dated 09.02.2021 requested the Deputy Commissioner of Customs, Drawback Cell, ACC, Bengaluru that, some of the shipping bills were erroneously filed as 'Free Shipping Bill' instead of 'All India rate of Duty Drawback' due to the oversight and requested for amendment to the Shipping Bill. They had filed a request for conversion for 19 shipping Bills for the period from 02.07.2020 to 28.12.2020. They have also stated that the said exports are made by filing free shipping bills and are not covered under any export promotion schemes viz., Advance authorization/EPCG, etc. All the inputs that have gone into manufacture of these export goods have suffered all the duties and taxes viz, GST/IGST/BCD etc., and remittance will be received in foreign currency. Further the same goods that are exported under free shipping bills are being continued to be exported regularly by claiming the “All Industry rate of Duty Drawback” and MEIS. After considering the provision of Section 154 of the Customs Act, 1962 and CBEC Circular No. 4/2004 dated 16.01.2004, the Adjudication authority allowed the request made by the Respondent for conversion of the shipping bills. The order issued by the Adjudication authority was reviewed and as per the Review order dated 24.02.2022, present appeal is filed on the ground that the Adjudication authority has not followed the Circular No. 36/2010 dated 23.09.2010. The Respondent herein filed Memorandum of Cross Objection.

3. When the appeal came up for hearing, the Learned Authorized Representative (AR) for the Revenue submits that the impugned order is unsustainable, since it is issued without considering the in terms of above statutory provisions read with Board's Circular No. 36/2010 dated 23.9.2010. Respondent vide letter dated 09.02.2021 requested for conversion of 18 shipping bills filed during the period from 02.07.2020 to 28.12.2020 to All India Rate Duty Drawback. Out of 18 Shipping Bills, 9(nine) bills were within 3(three) months and 8(eight)

Shipping bills after a lapse of 3(three) months and claim in respect of 1(one) Shipping Bill No. 7495241 dated 28.12.2020, was withdrawn by the respondent. The Order-in-Original Sl. No. 1235/2021, dated 25.11.2021, has incorrectly allowed the conversion of free shipping bills at SL No. 1 to SL No. 8(eight) despite the fact that the request for conversion does not satisfy the condition 3(a) of Board Circular No. 36/2010-Cus dated 23.09.2010. it is filed beyond the stipulated 3 months as per the Circular. Learned AR also submits t