Imperial Fragrance & Flavours Pvt. Ltd. Vs Commissioner of Customs (CESTAT Kolkata)
Summary: M/s. Imperial Fragrance & Flavours Pvt. Ltd. imported ‘Gurjon Oil’ and ‘Patchouli Oil’ from Indonesia under Bill of Entry No. 4012164 dated 11.07.2019. The Bill of Entry was assessed after examination and Out-of-Charge was granted on 19.07.2019. The appellant claimed exemption from Basic Customs Duty (BCD) under Notification No. 46/2011-Cus. dated 01.06.2011, as amended by Notification No. 82/2018-Cus. dated 31.12.2018.
During audit in 2021, an objection was raised that the appellant had paid IGST at 12% whereas 18% was required. The appellant accepted that differential IGST was payable but requested permission to file a supplementary Bill of Entry so that the differential IGST could be taken as input tax credit. A show cause notice dated 09.07.2021 was subsequently issued proposing revision of the classification of the imported oils, denial of the concessional BCD benefit and recovery of differential IGST. The adjudicating authority confirmed BCD of Rs.7,46,325/- and SWS of Rs.74,632.50/- together with differential IGST. The Commissioner (Appeals) dismissed the appellant’s appeal.
Before the Tribunal, the appellant contended that the Bill of Entry and connected documents, including the certificate of origin and invoice, had been duly produced at the time of import. It was submitted that the amended Notification No. 46/2011-Cus. covered goods under Chapter Heading 3301 irrespective of the applicable sub-heading. On IGST, the appellant submitted that the 12% payment was a bona fide error, that it had voluntarily agreed to pay the differential amount when pointed out in audit, and that the requested supplementary Bill of Entry was not considered. Since the differential IGST would be available as input tax credit, the appellant argued that the situation was revenue neutral.
