Pradipkumar P Patel Vs C.C. (CESTAT Ahmedabad)
The CESTAT, Ahmedabad in Pradipkumar P Patel v. C.C. – Ahmedabad [Customs Appeal No. 10047 of 2022 in Final Order No. A/10118-10134/2023 dated January 25, 2023] has set aside the order passed by the Revenue Department denying the exemption from duty of Customs and Integrated Goods and Services Tax (“IGST”) on the import of concentrated ‘Boron Ore’ on the grounds that the same has been obtained after removal of impurities, whereas, only naturally mined products are eligible for such exemption. Held that, the Revenue Department had not properly considered the defence submission made by the assessee and the relevant test reports showing that the imported product is ‘Boron Ore’. Further held that, when the test reports were available on record, there was no need to go to the website and Wikipedia for the meaning of the product. Remanded the matter back for reconsideration in the light of the test reports.
Facts:
Pradipkumar P Patel (“the Appellant”) was in the business of importing Boron Ore and was availing exemption of duty of Customs and additional duty under Sl. No. 113 of Notification No. 12/2012-Customs dated March 17, 2012 for the period April, 2015 to June, 2017 and exemption of duty of Customs and IGST under Sl. No. 130 of Notification No. 50/2017-Customs dated June 30, 2017 for the period after June, 2017 (“the Impugned Notifications”).
However, the Revenue Department (“the Respondent”) denied the exemption to the Appellant and subsequently passed the Order-in-Original dated November 1, 2021 (“the Impugned Order”), on the ground that the Boron Ore imported by the Appellant is not naturally mined Boron Ore as the impurities have been removed from it, therefore, the same is concentrated Boron Ore, which is not eligible for exemption and only naturally mined Boron Ore is eligible for exemption.
Being aggrieved, this appeal has been filed.
The Appellant contended that the test report by two laboratories confirmed that the goods imported is Boron Ore and once it is decided that the goods is Boron Ore, exemption is permissible despite the fact that whether it is concentrated or otherwise.
Issue:
Whether the import of ‘Boron Ore’ by the Appellant is eligible for exemption under the Impugned Notifications?
Held:
The CESTAT, Ahmedabad in Customs Appeal No. 10047 of 2022 in Final Order No. A/10118-10134/2023 held as under:
