Tech Zone Global Trading Company Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that Country of Origin [COO] certificate issued under Free Trade Agreement by another Sovereign Country needs to be honored. Overlooking COO without following procedure set out in Customs Tariff (Determination of Origin of Goods under the Preferential Trade Agreement between the Member States of ASEAN and the Republic of India) Rules, 2009 is untenable.
Facts- Based on specific intelligence that various Indian importers have been importing PVC flex banners of Chinese origin through Malaysia with the help of one Shri Manoj Arjun Gore of M/s. Topaz Plastic Industries (M) SDN BHD, Malaysia and have mis-declared the impugned goods as being of Malaysian origin to evade payment of ADD, the Chennai Zonal Unit of DRI initiated an investigation into these imports. M/s. Tech Zone Global Trading Company, was one such Indian importer. As per the IEC profile Shri Gyanesh Kumar and Rajesh Surana were the Directors of the importer-company. After due process of law, the Ld. Adjudicating Authority confirmed the proposals in the Show Cause Notices and demanded duty, along with interest and imposed penalties.
Conclusion- Held that impugned order has failed to cogently discuss the evidence and its relevance to the facts of the case relating to all the appellants. Duty cannot be collected on assumptions and presumptions or on the basis of statements that have not been properly linked to evidence to establish its veracity and accuracy. Hence the charge against all the appellants fails. No tax can be imposed by inference. Revenue has failed to prove that the impugned goods were imported from China to India and documents manipulated to show that they had been shipped from Malayasia; that the COO certificate was obtained fraudulently; that the good were mis-declared for weight or value. Hence no action survives against the appellants. We hence find that the impugned order merits to be set aside.
