Disha Realcon Pvt Ltd Vs Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that no officer of Customs including the DRI officers and the Commissioner of Customs has any power under the law to assess two or more Shipping Bills together or determine the Fe content or any other parameter combining goods covered by two or more Shipping Bills.
Facts- Disha Realcon and SM Niryat had exported iron ore fines whose Fe content was below 58% under some Shipping Bills and iron ore fines whose Fe content was above 58% under some other Shipping Bills. Iron ore fines with less than 58% Fe content were exempted from payment of export duty by notification no. 15/2016-Cus dated 1.3.2016.
DRI issued the SCN proposing to calculate the Fe content of the consignments exported under two or more Shipping Bills but which were loaded in the same vessel considering the overall Fe content of the goods in the vessel.
In reckoning the Fe content, in gross violation of the law laid down by Supreme Court in Union of India Gangadhar Narsingdas Aggarwal, the Fe content was calculated on dry basis instead of on wet basis in the impugned order. In the impugned order, the Commissioner confirmed the proposals in the SCN in gross violation of Gangadhar Narsingdas as well as the CBEC‘s circular.
