N. Agrotech Foods Limited Vs Commissioner of Customs (CESTAT Delhi)
The appeal concerns redemption fine and penalties imposed on the appellants for alleged violations of Sections 111(d) and 111(m) of the Customs Act, 1962. The dispute arose from the import of hydrogenated vegetable oil from Sri Lanka. The Bill of Lading for the consignment was dated 5 June 2006. Authorities alleged that, under DGFT Public Notice No. 17 dated 2 June 2006, import of vanaspati, bakery shortening, and margarine from Sri Lanka under the Indo–Sri Lanka Free Trade Agreement was restricted to NAFED, making the appellants ineligible to import the goods.
A subsequent DGFT Notification dated 24 July 2006 allowed import by others where the Bill of Lading was dated on or before 1 June 2006. Another Notification dated 11 September 2006 permitted import if the importer produced a certificate from Sri Lankan authorities confirming that the consignment left the factory on or before 2 June 2006 and was meant for export to India. The adjudicating authority assessed the Bill of Entry on 23 October 2006 and extended the benefit of Notification No. 26/2000-Cus. dated 1 March 2006, but still confiscated the goods as restricted goods and imposed redemption fine and penalties.
