Sakar Industries Pvt. Ltd. Vs Commissioner of Customs (CESTAT Ahmedabad)
Summary: The Ahmedabad Bench of CESTAT set aside the adjudication order confirming IGST demand, interest, redemption fine and penalty against Sakar Industries Pvt. Ltd. in relation to imports made under Advance Authorisations during October 2017 to November 2018. The dispute arose from the alleged non-fulfilment of the pre-import condition prescribed under Notification No. 18/2015-Cus dated 01.04.2015, as amended by Notification No. 79/2017-Cus dated 13.10.2017. The Tribunal found that the adjudicating authority had not verified whether the imported inputs were actually used in manufacture of exported goods and had proceeded substantially on comparison of Bills of Entry and Shipping Bills. On examination of the factual material, the Tribunal found that the allegation of exports preceding imports was factually incorrect for three Advance Authorisations. In relation to another Advance Authorisation, the appellant had voluntarily paid the IGST with interest after reassessment and obtained an EODC, while for the remaining Advance Authorisation the imported materials were found to have been used for exported finished goods. The Tribunal also found a strong prima facie case on limitation, though it kept the limitation issue open because the appeal was decided on the factual matrix. It further held that goods not available for confiscation could not be confiscated and redemption fine could not consequently be imposed. The impugned order was set aside and the appeal was allowed with consequential relief.
CESTAT Ahmedabad on Pre-Import Condition under Advance Authorisation
The appeal was filed against Order-In-Original No. AHM-CUSTM-000-PR.COMMR.-10-2024-25 dated 18.04.2024 passed by the Principal Commissioner of Customs, Ahmedabad.
