The Customs, Excise and Service Tax Appellate Tribunal, Chennai allowed an exporter’s request to convert free shipping bills into advance authorisation shipping bills, following a Bangalore Bench ruling in the exporter’s own case.

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has set aside the rejection of an exporter’s request to convert free shipping bills into advance authorisation shipping bills, where neither the authorisation nor the fulfilment of the export obligation was disputed [Promac Engineering Industries Limited v. Commissioner of Customs, Chennai, 2026-juristway.com-3375-CESTAT(Chennai)-Customs].

P. Dinesha, Member (Judicial), wrote the order for a Bench with Vasa Seshagiri Rao, Member (Technical). The exporter held an advance authorisation dated 22 Aug 2006 for duty‑free import of inputs to make and export a vertical roller mill to a cement company in Sudan. An advance authorisation lets an exporter import inputs without duty against an obligation to export the resulting goods.

After completing the export obligation and realising the proceeds in foreign currency, the exporter applied for its export obligation discharge certificate. It was asked to get the shipping bills endorsed with the authorisation details, and then found that its customs agents at Chennai had filed free shipping bills instead. Its conversion request of 20 Jun 2009 was rejected, and after an earlier round the Commissioner rejected it again by order dated 30 Sep 2016.

The exporter pointed out that the goods were examined and factory‑stuffed under Central Excise supervision, and relied on Final Order Nos. 21163‑21164/2024 dated 18 Sep 2024 of the CESTAT Bangalore Bench, which allowed conversion for the same exporter under the same authorisation. The Revenue argued that the board’s circular required a conversion request within one month, while the exporter applied after about a year.

The Tribunal found the facts in the Bangalore Bench’s order very similar and the view taken there just and proper. It saw no reason to differ, noting also that the time limit in the circular relied upon by the authorities had been held to be ultra vires the statute.

The impugned order was set aside and the appeal allowed.

2026-juristway.com-3375-CESTAT(Chennai)-Customs