Case Law Details
Radha Industries Vs Commissioner of Customs (Madras High Court)
The Madras High Court recently adjudicated the case of Radha Industries vs. Commissioner of Customs, focusing on the conditions tied to the provisional assessment of Bill of Entry No.6570809. This case revolves around the import of areca nuts from Sri Lanka, aiming for customs duty exemption under the India-Sri Lanka free trade agreement.
Background of the Case: The petitioner, Radha Industries, challenged the stringent conditions imposed during the provisional assessment of Bill of Entry No.6570809 for the import of areca nuts from Sri Lanka. The core contention was the authenticity of the certificate of origin, a prerequisite for availing customs duty exemption.
Legal Framework and Exemption Conditions: The petitioner claimed that, as per the India-Sri Lanka free trade agreement, areca nuts were exempt from customs duty. However, due to suspicions regarding the genuineness of the certificate of origin, onerous conditions were imposed during provisional assessment, prompting the legal challenge.
QR Code Verification Dispute: The petitioner’s counsel highlighted that the certificate of origin possessed a QR Code. Still, the High Commission of Sri Lanka refused to issue a verification certificate, arguing that the QR Code could be verified in real time. The counsel argued against mechanical verification, citing the circular dated 17.08.2021 of the Central Board of Indirect Tax and Customs.
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