Commissioner of Customs Vs Om Siddh Vinayak Impex Pvt Ltd (CESTAT Ahmedabad)
Summary : The case before CESTAT Ahmedabad concerns import of 25,603.2 kgs of synthetic fabric declared as “100% polyester plain dyed fabrics” under CTH 54075290, with claimed exemption under Notification No.137/2000-Cus. The declared assessable value was Rs.8,45,572/-. Samples tested by CRCL Kandla revealed texturized yarn content of 60–63.5%, below the 85% threshold required for the declared classification.
Based on the test results, the department provisionally assessed the goods and later finalized assessment by reclassifying them under CTH 54078290, denying exemption, enhancing the assessable value to Rs.20,66,877/-, and confirming differential duty of Rs.71,57,744/- with interest. The Commissioner (Appeals) initially set aside this order due to non-supply of test reports and lack of reasoning, and remanded the matter. Upon re-adjudication, the Deputy Commissioner reiterated classification, valuation, and duty demand. The Commissioner (Appeals) again set aside this order, leading to Revenue’s appeal before the Tribunal.
Revenue argued that the importer violated exemption conditions, lacked manufacturing facilities, misclassified goods to evade duty, and diverted goods into the domestic market without permission. It also contended that the CRCL test report was conclusive and not disputed, and that no retesting occurred.
The importer argued that the department doubted the test report, that samples were sent for retesting, and that the Letter of Permission (LOP) allowed manufacture of garments from fabrics. It further contended that Revenue raised issues beyond the scope of the show cause notice.
