Uni Colloids Impex Pvt Ltd Vs C.C.-Ahmedabad (CESTAT Ahmedabad)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, allowed the appeal filed by Uni Colloids Impex Pvt. Ltd. against the denial of the benefit of Notification No. 46/2011-Cus. on the import of cocoa powder from Malaysia. The appellant had imported 600 bags of alkalised cocoa powder under Bill of Entry dated 14 December 2018 and claimed preferential duty under the ASEAN-India Free Trade Agreement (AIFTA) based on a Certificate of Origin issued by the competent authority in Malaysia. During assessment, Customs denied the exemption relying on CBEC communications stating that preferential benefits should not be extended for imports of cocoa powder from Malaysia. The appellant paid duty under protest to secure clearance of the goods, after which a speaking order denied the exemption. The Commissioner (Appeals) upheld the adjudicating authority’s order.
Before the Tribunal, the appellant contended that the CBEC had no authority to curtail the scope of a statutory exemption notification through administrative letters. It was argued that the Board’s communications related to specific suppliers and could not be applied generally to all imports from Malaysia. The appellant further submitted that the Certificate of Origin had been issued by the competent Malaysian authority, had never been cancelled or declared invalid, and that if Customs had any doubt regarding its correctness, the verification procedure prescribed under the Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Government of the Republic of India and Malaysia) Rules, 2011 ought to have been followed. The appellant also relied upon several judicial precedents holding that valid Certificates of Origin cannot be discarded without following the prescribed verification mechanism.
