Case Law Details
Ceramic Tableware Pvt. Limited Vs Commissioner of Customs (CESTAT Delhi)
Introduction: The case of Ceramic Tableware Pvt. Ltd. vs Commissioner of Customs reached the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Delhi. The core issue involved redemption fine and penalties under Sections 112(a)(ii) and 114AA. The appellant, a ceramic tableware manufacturer, faced allegations of misclassification due to a clerical error in the Bill of Entry. This article delves into the detailed analysis of the case and the consequential CESTAT Delhi ruling.
Detailed Analysis: The appellant, a regular importer of calcium phosphate, filed Bill of Entry for importing their inputs. Due to a clerical error, the description of goods was incorrectly mentioned as ‘Apatite (GR) Calcium Phosphate’ instead of the correct ‘calcium phosphate.’ Recognizing the mistake, the appellant proactively approached the Customs Department for rectification and offered to pay the differential duty.
The Customs Department, however, suspected deliberate misclassification to pay lower custom duty. Allegations included an attempt to bypass mandatory requirements for importing calcium phosphate. The officers seized the goods, imposed a redemption fine of Rs. 12 lakhs, and levied penalties under Sections 112(a)(ii) and 114AA. The appellant, maintaining it was an inadvertent clerical error, sought rectification and willingly accepted the proposed demand.
Conclusion: CESTAT Delhi, after considering the facts, concluded that it was a case of a genuine clerical mistake. The appellant’s proactive approach in rectifying the error before any notice or dispute demonstrated the absence of contumacious conduct. Consequently, CESTAT allowed the appeal, setting aside the order of confiscation, redemption fine, and penalties under Sections 112(a)(ii) and 114AA.
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