MSS India Pvt Ltd Vs Commissioner of Customs (NS-III) (CESTAT Mumbai)
M/s MSS India Pvt Ltd appealed against the imposition of customs duty and penalties on imports of copper busbars and related goods under multiple bills of entry between July 2018 and May 2020. The jurisdictional authorities had demanded payment of differential duties totaling ₹7.25 crore, along with additional duty and penalties exceeding ₹5 crore, alleging non-compliance with Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, and arguing that the goods were misclassified. The dispute centered on whether the imported goods, declared as “copper bars” under tariff item 7407 1030, should have been classified as parts suitable for use with switchgear under tariff item 8538 9000, which would render them ineligible for exemption under the relevant notification for Export Oriented Units (EOU).
The appellant contended that they held a valid Letter of Permission (LoP) under the Foreign Trade Policy, allowing imports for manufacturing exported goods. They argued that the classification applied by customs authorities was residual and procedural and that the goods were indeed used in manufacture of permitted goods, consistent with the notification and rules. It was also submitted that prior communications and supplier documents confirmed the distinction between copper bars and busbars, and that the customs authorities’ re-assessment of the goods exceeded their jurisdiction.
