A. K. Jain Sales & Marketing Pvt. Ltd. Vs Commissioner of Customs (Preventive) (CESTAT Kolkata)
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata, delivered a common order in multiple connected appeals filed by A.K. Jain Sales & Marketing Pvt. Ltd. against the Commissioner of Customs (Preventive), Kolkata. The appeals arose from Orders-in-Appeal Nos. KOL/CUS(CCP)/AKR/527-534/2021 dated 14 July 2021, through which the Commissioner (Appeals) upheld the imposition of redemption fines while setting aside penalties. The dispute concerned the importation of yogurt-flavoured milk drinks through a port not authorized for livestock product imports.
The appellant had imported 4,600 cartons of yogurt-flavoured milk drinks under Bill of Entry No. 6672215 dated 29 January 2020 through the Changrabandha Land Customs Station (LCS). According to Notification No. S.O. 2666(E) dated 16 October 2014, issued by the Department of Animal Husbandry, Dairying and Fisheries (Ministry of Agriculture), Changrabandha is not among the ports authorized for importing livestock products. The authorized entry points are limited to major airports and seaports at Delhi, Mumbai, Kolkata, Chennai, Bangalore, and Hyderabad, where Animal Quarantine and Certification Services (AQCS) are available.
At the time of import, the appellant failed to produce the required veterinary certificate. The certificate was later submitted—No. 33.01.0000.110.53.031.15-113 dated 25 January 2020—issued by the Department of Livestock Services. The assessing authority concluded that importing through an unauthorized port violated the Livestock Importation (Amendment) Act, 2001 read with Section 11 of the Customs Act, 1962, rendering the goods liable to confiscation under Section 111(d). However, considering the breach to be minor, the authority allowed clearance of the goods on payment of redemption fine equal to 10% of the assessable value and penalty equal to 5%.
