Skipper Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
The CESTAT Kolkata ruling involves M/s. Skipper Ltd. contesting a customs duty demand of ₹1.27 crore and penalties imposed by the Commissioner of Customs (Port), Kolkata. The case centers on the import of Zinc Ingots under Advance Authorizations and Customs Notification No. 96/2009-Cus. The department alleged non-compliance with the notification’s conditions, as some exported finished goods were produced using domestically sourced raw materials prior to the imports. Skipper Ltd. argued that the Directorate General of Foreign Trade (DGFT) issued an Export Obligation Discharge Certificate (EODC) acknowledging fulfillment of their export obligations, making the customs authority’s demand unsustainable. Supporting case laws and DGFT’s exclusive jurisdiction over export obligations were cited in their defense.
The Tribunal found that Skipper Ltd. had fulfilled its obligations as verified by DGFT and the Customs authorities, which had released the performance bond. The judgment reiterated that once the export obligation is certified as complete, customs authorities cannot demand duty or penalties unless DGFT challenges the EODC. The court also clarified that the imported materials under such exemptions need not be physically incorporated into export goods, provided they are commercially known to be usable. Consequently, the demand and penalty were deemed unsustainable, reinforcing the precedence of DGFT certification over customs disputes in such cases.
