N. K. Hand & Sons (Garments) Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata, allowed the appeal and set aside the penalty imposed under Section 112 of the Customs Act, 1962, holding that no offence was established against the appellant. The case arose from the import of readymade garments in June 2013, where the goods were cleared by Customs authorities at Petrapole Land Customs Station based on a Pre-Shipment Certificate issued by the Bangladesh University of Textiles.
Subsequently, a show cause notice dated January 30, 2016 alleged that the issuing authority was not accredited and treated the certificate as invalid, proposing confiscation and penalty. The adjudicating authority imposed a penalty of ₹2,48,000/-, which was upheld by the Commissioner (Appeals).
The appellant contended that the Bangladesh University of Textiles was an accredited and authorized government institution. In support, reliance was placed on a communication dated November 17, 2005 issued by the Deputy High Commission of Bangladesh, confirming that the institution (formerly College of Textile Technology) was authorized to issue certificates relating to AZO and hazardous dyes. The appellant argued that the certificate was valid and had been accepted by Customs authorities at the time of clearance.
