Gravity Ventures Pvt. Ltd Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that claiming an exemption or a certain classification on a bill of entry is not mis-declaration or suppression of facts. Accordingly, demand for duty for the extended period or imposition of fine and penalty, for misdeclaration or suppression of fact not sustained.
Facts- The appellant filed bill of entry dated 02.04.2020 for import of non-woven interlining materials such as chemical bond, embroidery paper, and double-dot fabric. The goods were classified under CTH 56039100 and benefit of Notification No. 46/2011-Cus. dated 01.06.2011 was claimed.
However, based on test report, the matter was adjudicated by Additional Commissioner demanding duty amounting to Rs. 3,92,245/-, u/s. 28(4) of the Customs Act, 1962. Further, an amount of Rs. 5,04,189/-, was demanded as duty short-paid, with respect to thirteen previous Bills of Entry’s in which the Appellant had imported goods described as ‘Embroidery Paper’ along with a redemption fine of Rs.1,50,000/- and imposed a penalty of Rs. 80,000/- u/s. 112(a) and Rs. 1,00,000/-u/s. 114AA of the Act has also been imposed.
Commissioner (Appeals) upheld the order passed by Adjudicating Authority. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Supreme Court in Northern Plastic Ltd. Vs Collector of Customs & Central Excise held that claiming an exemption or a certain classification on a bill of entry is not mis-declaration or suppression of facts.
