Ajanta Soya Limited Vs Commissioner of Customs (CESTAT Delhi)
The appeal concerned a dispute over customs duty liability on Crude Palm Oil imported by the appellant under Notification No. 12/2012-CUS, which provided concessional duty subject to actual use of the imported oil in manufacturing specified final products and compliance with the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016. During May 2017, a fire occurred at the appellant’s factory, resulting in loss of imported Crude Palm Oil. The appellant reported the incident to authorities and insurance surveyors, with an initial joint verification showing loss of 214.069 MT. The appellant later revised the loss figure to 282.921 MT, attributing the difference to a human error in accounting entries. The surveyor’s final report did not accept this revision and assessed the loss at 230.77 MT.
A show cause notice was issued alleging maintenance of duplicate records, with the surveyor’s assessment adopted for duty computation. The authorities concluded that no processing occurred in the deodorizer feed tank where part of the oil was stored and further alleged delayed intimation of the fire. The Commissioner of Customs confirmed duty of ₹1,05,18,265/- under Section 28(8) of the Customs Act, interest under Section 28AA, and penalties under Sections 114A, 114AA, and 117.
