The Customs, Excise & Service Tax Appellate Tribunal, Chennai, upheld the Commissioner's rejection of the appellant's request to convert NFEI shipping bills into drawback shipping bills, denying duty drawback under Section 74 of the Customs Act, 1962. The Tribunal held that conversion under Section 149 is a discretionary power, not a matter of right, and the proper officer's discretion must be exercised in light of Section 74, which requires goods to be 'capable of being easily identified' to the satisfaction of the officer. The Tribunal held that physical examination of goods is a valid means of establishing identity, and the proper officer's discretion to require such examination cannot be faulted unless perverse. Circular No. 36/2010-Cus was held not to prescribe additional conditions beyond the statute; it merely guides discretion, and the Commissioner did not rely on it excessively. The requirement under Rule 4 of the Re-export of Imported Goods (Drawback of Customs Duties) Rules, 1995 to declare a drawback claim is mandatory, and the appellant's repeated failure to file correctly over a month could not be excused as inadvertence. The Tribunal also held that the conversion application could not be treated as a refund application under Section 27 of the Act, citing that refunds are statutory and must follow prescribed procedures. The appeal was dismissed.
