Chemspark India Pvt Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
The appeal challenged an Order-in-Appeal dated 22 July 2021, by which the Commissioner modified the Order-in-Original dated 16 September 2019 and held that the imported goods were prohibited and liable for absolute confiscation under Section 111(d) of the Customs Act, 1962, without allowing redemption.
The appellant had imported 1,600 kg of TC-2PT48 (Zinc Pyrithione) and 5,000 kg of TC-MAB40CD (Sodium Coco Ampho Diacetate) from China through a Bill of Entry dated 20 June 2018, declaring an assessable value of ₹15,20,382 and paying duty of ₹3,03,773. During assessment, it was noted that Zinc Pyrithione falls under the Schedule to the Insecticides Act, 1968 and requires mandatory registration or permission under Section 9 from the Registration Committee. The appellant did not possess the requisite CIB permit. While applying for the permit, the appellant requested the department to warehouse the goods to avoid detention and ground rent, and this was accepted. Nine extensions of the warehousing period were granted, the last being on 29 May 2019 up to 30 June 2019.
When the appellant remained unable to obtain the CIB permit despite multiple extensions, they sought permission on 17 June 2019 to re-export the goods to the overseas supplier, submitting a letter showing the supplier’s willingness to accept the material at the same price.
