Super Metal House Vs Commissioner of Customs (CESTAT Bangalore)
The appeal concerned denial of the benefit of Exemption Notification No. 46/2011-Cus. dated 1 June 2011 and Notification No. 53/2011-Cus. dated 1 July 2011 granting a preferential rate of customs duty on imports of Tin Ingots. The appellant, an importer and dealer of non-ferrous metals, regularly imported Tin Ingots from Singapore under eight Bills of Entry and claimed the benefit of the exemption notifications read with Rules 3 and 5 of the India-ASEAN Preferential Trade Agreement (PTA) Rules. A show cause notice dated 27 August 2020 alleged that the appellant had wrongly availed the preferential rate of duty due to non-compliance with the exemption notifications. The Adjudicating Authority confirmed the demand, interest and penalty by Order-in-Original dated 23 July 2021, which was upheld by the Commissioner (Appeals) by order dated 18 November 2022, leading to the present appeal.
The appellant submitted that Rules 3 and 5 of the India-ASEAN PTA Rules deem products to originate in Malaysia where the ASEAN-India Free Trade Area (AIFTA) content is not less than 35% of the FOB value and non-originating materials undergo the prescribed tariff classification change. It contended that every consignment was accompanied by Country of Origin (COO) Certificates issued by the Ministry of Investment, Trade and Industry (MITI), Malaysia, the competent government authority responsible for issuing such certificates after verification under the India-ASEAN PTA Rules and the India-Malaysia PTA Rules. The appellant further argued that the show cause notice alleging wilful suppression and misstatement was unsustainable since it had disclosed the facts furnished by the supplier.
