Empire Exports Vs Commissioner of Customs (Port) (CESTAT Kolkata)
In the case of Empire Exports Vs Commissioner of Customs (Port), the CESTAT Kolkata addressed an appeal concerning the duty demand issued against the Appellant for importing White Poppy Seeds between November 2010 and April 2011. The Appellant utilized duty scrips under the Focus Product Scheme (FPS) and the Vishesh Krishi and Gram Udyog Yojana (VKGUY) to the extent of ₹30,64,968. After the initial assessment, the goods were cleared. However, a Show Cause Notice was issued on January 27, 2015, alleging the ineligibility of the scrips used for the imports. The Adjudicating Authority upheld this demand, leading the Appellant to contest the ruling in front of the Tribunal.
The Appellant’s counsel argued that the Customs officials had initially assessed and cleared the Bills of Entry, thus shouldered the burden of verifying the eligibility of the utilized scrips. He asserted that imposing the duty again constituted double taxation and that the demand was time-barred since the assessment occurred four years prior without any suppression of information. The Revenue’s representative defended the demand, maintaining that the utilized scrips were not valid for the imports. However, the CESTAT acknowledged that the Customs officials were aware of the import classification at the time of clearance, which negated the basis for any allegations of suppression. Ultimately, the Tribunal ruled in favor of the Appellant, setting aside the duty demand due to its time-barred nature and granting consequential relief.
