Titanium Ten Enterprises Pvt Ltd Vs Commissioner of Customs (CESTAT Mumbai)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Mumbai has set aside an order that demanded differential duty from Titanium Ten Enterprises Pvt Ltd for imported cotton fabrics. The company was challenging a 竄ｹ4,96,186 duty demand and the confiscation of 29,506 meters of fabric, which it had attempted to clear under a duty-free import scheme. The dispute arose after a test report from the Central Revenue Control Laboratory (CRCL) contradicted an earlier report from the Textile Committee.
Initially, the goods were allowed duty-free clearance based on the Textile Committee’s report. However, discrepancies were found when samples from different styles of fabric were tested by the Deputy Chief Chemist (DyCC) of CRCL. This led to the denial of the duty-free benefit, and the goods were confiscated under sections 111(d) and 111(m) of the Customs Act, 1962. The company was also penalized and given an option to redeem the goods upon payment of a fine.
Titanium Ten appealed, arguing that further tests by the Director, CRCL, were necessary due to the conflicting reports. The tribunal agreed, noting that accepting the subsequent CRCL report without confirming its veracity violated principles of natural justice. The tribunal remanded the case back to the original authority, instructing them to refer samples to the Director, CRCL, for a final and definitive test before re-assessing the duty. The appeal was allowed by way of remand.
