Case Law Details
Reena Brothers Vs Commissioner of Customs-Mundra (CESTAT Ahmedabad)
Introduction: The recent decision by CESTAT Ahmedabad in the case of Reena Brothers vs. Commissioner of Customs-Mundra revolves around the compliance with transitional arrangements concerning Watermelon Seeds. The appellant contested the rejection of their appeal by the Commissioner (Appeals), challenging the confiscation of goods and penalties imposed by the Adjudicating Authority.
Detailed Analysis: The appellant had filed a Bill of Entry dated 31.12.2021 for the clearance of Watermelon Seeds under Customs Tariff Heading 12077090. Subsequently, it was discovered that the goods were restricted as per Notification No. 03/2015-20 dated 26.04.2021, allowing import subject to Policy Condition No. 4 of Chapter 12 of the Customs Tariff Act, 1975. As the appellant failed to fulfill these conditions, the goods were seized on 07.01.2022.
The Adjudicating Authority, after providing an opportunity to the appellant, confiscated the goods and imposed penalties under various sections of the Customs Act, 1962. The appellant, dissatisfied with the Order-In-Original, appealed before the Commissioner (Appeals), and upon rejection, approached CESTAT Ahmedabad.
The crux of the matter lies in the timing of the restriction imposed on Watermelon Seeds and its applicability to goods in transit. The appellant argued that, as per the Transitional Arrangements of Foreign Trade Policy 2015-20, any restriction imposed after the shipment is made within the original validity period of an irrevocable commercial letter of credit shall not apply.
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