Greatway Impex Vs Commissioner of Customs (CESTAT Chennai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, allowed the appeal challenging the denial of concessional Countervailing Duty (CVD) on imported cement and set aside the demand of differential duty, interest, and penalty imposed by the customs authorities. The dispute concerned imports of Ordinary Portland Cement made during June–July 2010 through Tuticorin Port under four Bills of Entry, where the importer had claimed concessional assessment under Clause 1C of Notification No. 04/2006-CE dated 01.03.2006. The department alleged that since the cement was imported in 50 kg bags bearing printed Retail Sale Price (RSP), the goods were ineligible for the exemption and should instead be assessed under Clause 1A(ii), leading to a differential duty demand under Section 28(4) of the Customs Act, 1962, along with interest and penalty under Section 114A.
The Tribunal identified the core issue as whether the benefit under Clause 1C could be denied merely because the imported cement was packed in 50 kg bags carrying printed RSP. It observed that Notification No. 04/2006-CE prescribed different duty rates depending on packaging and RSP, but the explanation appended to the notification clarified that goods not intended for retail sale would continue to be treated as goods other than those cleared in packaged form, even if packed. Accordingly, the decisive factor was not the existence of packaging or RSP markings, but whether the goods were intended for retail sale.
