JSW Steel Ltd Vs Commissioner of Customs-Goa (CESTAT Mumbai)
In a significant ruling, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Mumbai provided relief to JSW Steel Ltd. by setting aside a customs duty demand of over Rs. 16.54 lakh. The decision centered on the issue of limitation, specifically whether a corrigendum issued more than four years after an initial, defective Show Cause Notice (SCN) could be considered a valid, new notice.
The case originated from the export of steel coils by JSW Steel between April and May 2008. The company had cleared 138 shipping bills on May 9, 2008, when the export duty was ‘NIL’. However, a new notification (No. 66/2008-CUS) issued on May 10, 2008, changed the duty rate to 15% and 10% for the respective steel products. While the 138 bills cleared on May 9 were correctly exempted, a dispute arose over five other consignments for which the export entry outward was granted on May 10, 2008, but the actual loading took place on May 14, 2008.
The Commissioner of Customs, Panaji, initially confirmed a duty demand for these five consignments. This was based on an SCN dated October 3, 2008, which demanded Rs. 8,87,600 and Rs. 7,66,473 on the two groups of consignments, respectively, along with interest.
