Western Farm Fresh Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
The appeal was filed challenging the denial of exemption under Notification No.125/2011-Cus. dated 30.12.2011 and the consequent confirmation of duty demand, penalty, and confiscation of imported goods. The appellant had imported “D&W Chicken Spicy Sausages” classified under CTH 16010000 and claimed concessional duty under the said notification.
The Department disputed the claim on the ground that Note 2 of Notification No.125 excluded goods specified in its Annexure from the benefit. Sl. No.233 of the Annexure specifically covered goods under sub-heading 160100, thereby rendering the imported goods ineligible for the exemption. Based on this, a demand notice was issued under Section 28 of the Customs Act, 1962, along with a show cause notice for misdeclaration of retail sale price. The adjudicating authority rejected the declared RSP, confirmed the differential duty demand, imposed penalty, and ordered confiscation of goods.
The first appellate authority upheld the adjudication order and dismissed the appeal. The appellant then approached the Tribunal, raising the issue of eligibility for exemption under Notification No.125.
The Tribunal observed that there was no dispute regarding the exclusion clause under Note 2 of the notification, which clearly denied the benefit to goods falling under sub-heading 160100. Therefore, the appellant’s claim under Notification No.125 was held to be untenable.
