Case Law Details
Sterlite Industries (I) Ltd. Vs Commissioner of Customs (CESTAT Chennai)‘
Introduction: In a recent case, Sterlite Industries (I) Ltd. appealed against the denial of exemption for Special Additional Duty (SAD) on imported ‘Rock Phosphate’ by the Commissioner of Customs. The appellant claimed exemption under a specific notification meant for fertilizers and their raw materials. However, the authorities argued that the imported goods did not qualify as fertilizers and that the appellant was not engaged in fertilizer manufacturing.
Analysis: The central issue revolved around the classification of the imported goods, as they were declared as ‘Natural Rock Phosphate’ and not as ‘fertilizers.’ The appellant sought exemption as inputs for fertilizer manufacturing. The department sought expert opinion from fertilizer control laboratories and concluded that the goods were not informed as per the Fertilizer Control Order (FCO). Additionally, the Hon’ble High Court of Madras at Madurai Bench had previously ruled against the appellant on a similar issue.
Conclusion: CESTAT Chennai upheld the denial of SAD exemption, affirming that ‘Rock Phosphate’ does not qualify as ‘fertilizer’ under the FCO and that the appellant was not engaged in fertilizer manufacturing. The appellant’s appeal was dismissed, following the precedent set by the jurisdictional high court’s decision.
FULL TEXT OF THE CESTAT CHENNAI ORDER
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