General Agencies (Kolkata) Pvt. Ltd. Vs Commissioner of Customs (Appeals) (CESTAT Kolkata)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata allowed the appeal filed by General Agencies (Kolkata) Pvt. Ltd. and set aside penalties imposed under Sections 112(a) and 114AA of the Customs Act, 1962.
The appellant had imported Kerosene Generator Sets by classifying the goods under CTH 85023990 and filed Bills of Entry dated 25.08.2020 and 26.10.2021. Along with the Bills of Entry, the appellant submitted all relevant documents, including Emission Certificates issued by Envirotech East Pvt. Ltd., an empanelled laboratory authorized by the Ministry of Environment. After verification of the Bills of Entry and accompanying documents, including the environmental certificates, Customs authorities permitted clearance of both consignments for home consumption.
On 19.01.2023, a Show Cause Notice was issued alleging that the goods were correctly classifiable under CTH 85022090 instead of CTH 85023990. The notice also alleged that the environmental certificate did not comply with the applicable notification because it was not issued in the prescribed “Type Approval” form. The adjudicating authority reclassified the goods and imposed penalties of Rs. 15 lakh under Section 112(a)(i) and Rs. 25 lakh under Section 114AA of the Customs Act. The Commissioner (Appeals) upheld the order, leading to the present appeal.
