Balaji Ceramic Products Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that as identity and genuine export of CPC (Calcined Petroleum Coke) is duly established, re-import of the rejected goods are to be treated as freely importable under Foreign Trade Policy.
Facts- The issue involved in this appeal is whether the re-imported petroleum coke have been rightly confiscated alongwith imposition of penalty under Section 112(b) of the Customs Act.
The Appellant filed a Bill of Entry for clearance of purportedly re-imported goods (Calcined Petroleum Coke) which were claimed to have been exported on the grounds of rejection of the goods by the Buyer, and were accompanied with re-export invoice issued by M/s NAJD Steel.
The SCN was adjudicated on contest and the goods were absolutely confiscated being 19,506.20 kg of CPC valued at Rs. 6,06,156.22/- crores. Further penalty of Rs. 6 ,06,156/- was imposed u/s. 112(b) of the Act. Being aggrieved the appellant preferred appeal before the Commissioner (Appeals) who was pleased to reject the appeal. Being aggrieved, the appellant exporter (re-importer) have filed present the appeal before the Tribunal.
Conclusion- Held that both the identity of the goods is also established and also that the appellant had genuinely exported the goods to the user buyer in Saudi Arabia. Further, on rejection by the buyer, the appellant was obligated to re-import the goods to mitigate his loss.
Admittedly, the export in this case was made through shipping bill which is before the date of restriction imposed vide Notifications. Thus, I hold that CPC was free for export-import on the day of export, the re-import by the appellant of the rejected goods, has to be treated as freely importable under the Foreign Trade Policy.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
Heard the parties.
2. The issue involved in this appeal is whether the re-imported petroleum coke have been rightly confiscated alongwith imposition of penalty under Section 112(b) of the Customs Act. The brief facts are as follows:
(i) The Appellant had filed a Bill of Entry bearing No. 7159403 dated 08.03.2020.at ICD Mandideep (Bhopal) for clearance of purportedly re-imported goods (calcined Petroleum Coke) which were claimed to have been exported against SB No. 1275899 dated 1.12.2017, on the grounds of rejection of the goods by the Buyer, and were accompanied with re-export invoice no. SBCP-53/2019 dated 21.01.2020 issued by M/s NAJD STEEL, Riyadh.
(ii) It was observed during routine physical verification of the goods that:
