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CESTAT Rejects ADD Demand Due to Lack of Proof on Alleged Iran Origin of Imported Goods

Case Law Details

TaxGuru Citation
2026 taxguru.in 5185
Case Name
Keltech Energies Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
Date of Judgement/Order
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Keltech Energies Ltd. Vs Commissioner of Customs (CESTAT Mumbai)

In Keltech Energies Ltd. Vs Commissioner of Customs, the CESTAT Mumbai allowed the appeal filed against an order demanding anti-dumping duty on imported ammonium nitrate allegedly originating from Iran.

The adjudicating authority had rejected the declared country of origin as Uzbekistan in respect of seventeen Bills of Entry and treated the imports as originating from Iran underNotification No. 44/2017-Customs (ADD) dated 12.09.2017 Consequently, duty demand of Rs. 2.75 crore, interest, confiscation with redemption fine of Rs. 1 crore, and penalties under Sections 114A and 114AA of the Customs Act were imposed.

The appellant contended that the goods originated from Uzbekistan and were transported through Iran because Uzbekistan is land-locked. The importer stated that Country of Origin Certificates had been submitted and no investigation was conducted by the authorities to verify or challenge the genuineness of those certificates. The appellant also alleged discrimination, pointing out that proceedings against another noticee on similar facts had been dropped by another adjudicating authority.

Revenue relied upon recorded statements, emails, WhatsApp chats, and electronic evidence to allege collusion and misdeclaration of country of origin and port of loading. However, the Tribunal found that the electronic evidence had not been subjected to the requirements of Section 138C of the Customs Act. It observed that the chats did not establish the identity of the persons involved, lacked authentication, and could not conclusively link the imported goods to Iran.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,134

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