Case Law Details
Lexus Paints And Coating Vs C.C.-Mundra (CESTAT Ahmedabad)
Introduction: In a case before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Ahmedabad, the allegations of mis-declaration were challenged by the appellant. The CESTAT concluded that allegations of mis-declaration cannot be upheld without complete evidence and when there has been a violation of the principles of natural justice.
Background of the Case: The appellant in this case had filed two Shipping Bills for the export of Iron Oxide to Saudi Arabia. The appellant had classified the export product under Tariff Item 2821 1010. To determine the nature of the export product, samples were drawn from the consignment and sent to the Custom House Laboratory (CRCL) in Kandla.
The CRCL Test Reports: The CRCL’s test reports, dated December 4, 2015, and February 12, 2016, confirmed that the consignment consisted of Iron Oxide. The test results showed that the Iron Oxide content was about 68.4% and later 97.84%. The test reports were unambiguous in identifying the export product as “Iron Oxide.”
Allegations by the Department: However, the Department took a different view based on a report that questioned the classification. They alleged that the export consignment was not Iron Oxide but “Iron Ore,” classifiable under a different Customs Tariff Heading. Subsequently, a Show Cause Notice (SCN) was issued, alleging mis-declaration and demanding a 30% duty.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
