#NissanMotorIndiaPrivateLimited – 𝐀𝐚𝐝𝐫𝐢𝐤𝐚𝐚 𝐋𝐞𝐠𝐚𝐥 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬 (𝐀𝐋𝐒)

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 27.11.2025

CESTAT Chennai Sets Aside Rejection of Shipping Bill Amendment and Upholds Exporter’s Right to Service Tax Refund

This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

In a significant judgment, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai, has ruled in favor of M/s. Nissan Motor India Private Limited in Customs Appeal No. 41250 of 2015. The case revolved around the rejection of a request to amend shipping bills to claim a refund of service tax under Notification No. 52/2011-ST dated 30.12.2011.

Background of the Case

Nissan Motor India, engaged in the export of motor cars through Chennai/Ennore Port, sought a refund of service tax paid on specified services as a percentage of the FOB value of goods exported. However, the company failed to make the required declaration in its shipping bills at the time of export, which is a procedural requirement under the notification. Upon realizing the oversight, Nissan approached the Customs Authorities to amend the shipping bills to include the declaration, enabling them to claim the refund.

The Assistant Commissioner of Customs rejected the request, citing that the declaration was not made at the time of filing the shipping bills and amendments could not be considered post-export. Subsequently, Nissan filed an appeal with the Commissioner of Customs (Appeals-II), who upheld the rejection. Aggrieved by this decision, Nissan escalated the matter to CESTAT Chennai.

Arguments Presented

The appellant’s consultant, argued that the non-mention of the declaration was a procedural lapse and should not result in the denial of benefits intended for exporters. He cited precedents from various High Courts, including the Gujarat High Court (Reliance Industries Ltd.), Kerala High Court (Saint Gobain India Pvt. Ltd.), and Madras High Court (Pasha International), where similar procedural errors were rectified to ensure exporters received their rightful benefits.

On the other hand, the Revenue’s representative, contended that the appeal should be dismissed as the declaration was not made at the time of export. She referred to the CESTAT Chennai decision in the case of M/s. J.K. Tyre and Industries Limited, which involved a different context of converting shipping bills under the NFEI Scheme to the drawback scheme.

The Tribunal’s Decision 

After hearing both sides and reviewing the appeal records, the Hon’ble Member (Technical), delivered the final verdict on November 26, 2025. The Tribunal emphasized the importance of Section 149 of the Customs Act, 1962, which allows amendments to shipping bills if documentary evidence existed at the time of export. It was noted that Notification No. 52/2011-ST was in effect when the shipping bills were filed, and the government’s policy is to promote exports and avoid taxing them.

The Tribunal found that the lower authorities had not provided valid reasons for rejecting the amendment request, despite the existence of necessary documentary evidence. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief as per the law.

Key Takeaways

Procedural Lapses Should Not Deny Benefits: The judgment reinforces the principle that procedural errors should not prevent exporters from availing benefits they are entitled to under the law.
Section 149 of the Customs Act: The Tribunal highlighted the discretionary power of customs authorities to amend shipping bills if documentary evidence existed at the time of export.
Precedents Matter: The Tribunal relied on similar judgments from various High Courts, emphasizing the importance of consistency in legal decisions.
Promoting Exports: The decision aligns with the government’s policy to encourage exports and ensure that taxes are not exported.

Conclusion

This landmark ruling by CESTAT Chennai is a win for exporters, ensuring that procedural lapses do not hinder their ability to claim rightful benefits. It underscores the importance of a fair and balanced approach by authorities in dealing with procedural errors, especially when the intent and eligibility of the exporter are clear. This decision will undoubtedly serve as a precedent for similar cases in the future, promoting a more exporter-friendly environment in India.

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