Case Law Details
Ocean Sky Impex Private Limited Vs Commissioner of Customs (CESTAT Chennai)
Introduction: The recent order by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in the case of Ocean Sky Impex Private Limited versus the Commissioner of Customs, Chennai, sheds light on the provisional release of seized polyester coated fabric. This article delves into the details of the case, examining the grounds for the application and the subsequent decision by CESTAT.
Detailed Analysis: The appeal filed by Ocean Sky Impex Private Limited sought early hearing against the Order-in-Appeal No. Seaport C.Cus. II No. 477/2023 dated 21.07.2023. The primary prayer in the appeal was for the provisional release of seized goods, specifically “Polyester Coated Fabric (Polymeric Compound).”
The appellant had imported the goods from a China-based company, but an investigation by the Directorate of Revenue Intelligence (DRI) led to a classification dispute. The Textiles Committee, Chennai, reported a different classification, and Anti-Dumping Duty (ADD) was proposed. The goods were seized, leading to a plea for provisional release for re-export.
Despite depositing a substantial amount towards ADD, the DRI seized the goods. The appellant argued that the supplier acknowledged the mistake and requested re-export. The Hon’ble High Court directed the Department to decide on provisional release within 10 days. However, both the adjudicating authority and the first appellate authority rejected the request, citing an ongoing investigation.
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