Nitta Gelatin India Ltd Vs Commissioner of Customs (Kerala High Court)
Kerala High Court held that import of decalcified fish scale is eligible for the benefit of advance authorization scheme. Thus, benefit of advance authorization cannot be denied by the department.
Facts- The assessee M/s. Nitta Gelatin India Limited used to manufacture collagen peptide from Bovine Bone protein. Later, the assessee proposed to manufacture collagen peptides from fish protein. Accordingly, fish protein obtained by decalcification of fish scales were imported from countries like China and Japan.
A show cause notice was issued to the assessee for mis-declaring the goods. In the adjudication proceedings that followed, the Commissioner of Customs classified the imported products under Chapter heading 0511 9190 and demanded a differential duty, notwithstanding that the goods imported were covered under the advance authorization scheme.
It was the case of the Department that the benefit of the concessional rate of duty under Notification No.96/2009 dated 11.09.2009, which was applicable for import of goods under advance authorization scheme, was not available to the assessee since he had allegedly mis-declared the imported product as ‘fish protein’ when the correct description ought to have been ‘decalcified fish scale’.
Conclusion- Held that in as much as the classification of the imported items had no bearing on the legality of imports for the purposes of the advance authorization scheme, and the authorities entrusted with the administration of the said scheme have not viewed the different descriptions used by the assessee at the time of import of the product under the advance authorization scheme to be in breach of the terms and conditions of the advance authorization, the stand of the Revenue that the assessee would lose the benefit of the notification in question, cannot be accepted.
