Commissioner of Custom (Preventive) Vs Viraj Profiles Limited (Supreme Court of India)
The matter arose from a dispute regarding the customs classification of quicklime imported by Viraj Profiles Ltd. during the period 12.09.2014 to 04.06.2018. The importer classified the goods under Customs Tariff Item (CTH) 2522 10 00 of the First Schedule to the Customs Tariff Act, 1975 and claimed exemption benefits under Notification No. 50/2017-Customs dated 30.06.2017 and Notification No. 01/2017-Integrated Tax dated 28.06.2017. While examining a Bill of Entry dated 11.06.2018, the Customs Department formed the view that the imported product was a calcined product of limestone falling outside Chapter 25 by virtue of Chapter Note 1 and was classifiable under CTH 2825 90 90, attracting a higher rate of duty. The importer thereafter sought provisional assessment under Section 18 of the Customs Act, 1962. A show cause notice dated 10.07.2019 proposed recovery of differential duty under Section 28(4), confiscation under Section 111(m) and penalties under Sections 114A and 114AA. By Order-in-Original dated 31.10.2019, the Commissioner of Customs (Preventive) confirmed the duty demand for the normal period, reclassified the goods under CTH 2825 90 90, and imposed penalty under Section 112(a). The Assistant Commissioner finalized the provisional assessments on 09.01.2020, and the Commissioner (Appeals), by order dated 05.04.2021, rejected the importer’s appeal and upheld the original order.
