Marvel Silver Vs Commissioner of Customs (CESTAT Mumbai)
The appeal before the CESTAT Mumbai challenged an order from the Commissioner of Customs, Air Cargo Complex (ACC), Mumbai, which confirmed a differential duty demand of ₹ 2,44,13,048 under Section 28 of the Customs Act, 1962, plus interest. The order also involved the confiscation of imported goods valued at an unspecified amount under Section 111, allowed to be redeemed upon payment of a fine of ₹ 3,25,00,000 under Section 125, and imposed penalties on M/s Marvel Silver and Shri Nilesh Pushparaj Jain under various sections.
The dispute related to ten consignments imported between February 2018 and July 2018, all claiming the benefit of the ASEAN India Free Trade Agreement (AIFTA) exemption, facilitated by specific customs notifications, for goods sourced from Thailand. The genesis of the proceedings was a single, live consignment (Bill of Entry no. 7500874/04.08.2018) where the importer withdrew the exemption claim and paid duty of ₹ 37,99,601 under protest due to discrepancies between the declared contents and the certificate of origin (COO).
The subsequent show cause notice, dated December 30, 2020, applied the discrepancy found in the single live consignment to the ten earlier imports, concluding that the AIFTA certification was inadequate and thus justifying the denial of the exemption.
