JMS Mining Private Limited Vs Commissioner of Customs (CESTAT Kolkata)
The CESTAT Kolkata considered an appeal against an order confirming differential customs duty, interest, penalty and redemption fine arising from the import of battery haulers in Completely Knocked Down (CKD) condition under Notification No. 50/2017-Customs. The dispute related to two Bills of Entry covering part shipments of battery haulers imported separately due to storage constraints, where the Department denied the concessional basic customs duty available under Sl. No. 524(a) of the notification and treated the imports as not being in CKD condition.
Before the Tribunal, although the appellant had raised arguments on the merits of the classification and concessional notification, it primarily contested the demand on the grounds of limitation and maintainability of the proceedings.
The Tribunal observed that the Show Cause Notice had been issued on 13.12.2023 in respect of Bills of Entry assessed in April 2019 and cleared through out-of-charge orders dated 17.05.2019. It held that the dispute involved interpretation of the conditions prescribed under Notification No. 50/2017-Customs, which was technical in nature. Mere claiming of the benefit of a notification or adopting a particular classification could not constitute wilful misstatement or suppression of facts for invoking the extended period under Section 28(4) of the Customs Act, 1962. The Tribunal further noted that the importer had disclosed all relevant particulars in the Bills of Entry and invoices, including the declaration that the goods were imported in CKD condition. The Department was already aware of these facts, and therefore the essential ingredients for invoking the extended limitation period were absent. Consequently, the demand based on the extended period was held to be unsustainable.
