Hazoorilal & Sons Jewellers Private Limited Vs Principal Commissioner of Customs (CESTAT Delhi)
Material Facts: The appellant, M/s. Hazoorilal and Sons Jewellers, along with its Director, Shri Sandeep Narang, imported jewellery from Thailand under 19 Bills of Entry. The appellant claimed duty-free import benefits under Exemption Notification No. 85/2004-CUS, dated 31.08.2004, issued under the Free Trade Agreement (FTA) between India and Thailand. To support its claim, the appellant submitted Certificates of Origin issued by the designated competent authority in Thailand. These certificates uniformly reflected a value addition of 22% in Thailand, satisfying the minimum statutory requirement of 20% under the “Interim Rules of Origin” published via Notification No. 101/2004-CUS (NT), dated 31.08.2004. Customs officers initially cleared the goods under the 19 Bills of Entry based on these certificates.
Procedural History: Following an investigation, the Directorate General of Revenue Intelligence (DRI) concluded that the value addition in Thailand could not have exceeded 20%. The DRI issued a Show Cause Notice (SCN) dated 14.07.2014 proposing to deny the exemption, recover differential customs duty with interest, and impose penalties. The Principal Commissioner confirmed the proposals in the SCN via an Order-in-Original dated 16.01.2023. Aggrieved by this order, the appellants filed appeals before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi.
