Rishabh Salvage Energy Pvt Ltd. Vs C.C. (CESTAT Ahmedabad)
Three appeals arose from a common show cause notice issued by DRI dated 02.07.2020 under Section 28AAA of the Customs Act, 1962. The principal appellant, along with a director and a custom broker, challenged the demand of duty and imposition of penalties relating to two Focus Market Scheme (FPS) scrips issued by DGFT after export of salt through Mundra Custom House.
The allegation was that the appellant had misclassified exported goods under CTH 2501 00 90 (industrial salt) instead of CTH 2501 00 10 (common salt), to avail 2% credit under the FPS scheme. It was contended by DRI that the correct classification attracted no such benefit. Reliance was placed on DGFT Office Memorandum dated 26.12.2017 and Notification dated 02.07.1977.
The appellant submitted that the exported salt was not fit for human consumption and was used for cattle feed, textile, and fisheries, and contained anti-caking agents. It was examined by the Department of Salt and certified as export-worthy. It was further contended that all shipping bills with description and classification were furnished to DGFT and the FPS scrips were issued accordingly. The scrips had never been cancelled by DGFT and remained valid.
