Global Exim Vs C.C.-Mundra (CESTAT Ahmedabad)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, allowed the appeal filed by Global Exim against the order denying the benefit of concessional customs duty under Notification Nos. 46/2011-Cus. dated 1 June 2011 and 53/2011-Cus. dated 1 July 2011 on imports of alkalised cocoa powder from Malaysia. At the time of import, the appellant claimed the benefit of the ASEAN-India Free Trade Agreement (AIFTA), filed the required Certificate of Origin (COO) in Form A-1 issued by the competent authority in Malaysia, and the Bill of Entry was finally assessed with the exemption being granted.
Subsequently, the Department reviewed the assessment and alleged that the imported goods were derived from cocoa beans originating in Ghana and that the regional value addition in Malaysia was only about 13–17%, instead of the minimum 35% required under the applicable Rules of Origin. A show cause notice dated 30 April 2019 proposed recovery of differential customs duty of ₹26,54,934 under Section 28(4) of the Customs Act, 1962, along with interest, reassessment of the Bill of Entry under Section 149, denial of the concessional duty benefit, and imposition of penalties under Sections 112(a), 114A and 114AA. The adjudicating authority confirmed the demand with interest and imposed penalty under Section 114A, and the Commissioner (Appeals) upheld the order.
