Madhepura Electric Locomotive Pvt. Ltd. Vs Principal Commissioner of Customs (Port) (CESTAT Kolkata)
The appeal was filed against an order confirming differential Integrated GST (IGST), interest, redemption fine and penalty in respect of imports made by Madhepura Electric Locomotive Pvt. Ltd., a joint venture between Alstom Transport India Ltd. and Indian Railways engaged in manufacturing and supplying electric locomotives. The dispute related to imports of Loco Tractor Lok 2.60, Loco Mover Crab 1500 and Battery Shunter from Italy under three Bills of Entry filed between November 2017 and January 2018. The appellant classified the imported goods under Chapter 86 of the Customs Tariff and cleared them on payment of basic customs duty at 10% and IGST at 5% after self-assessment under Section 17 of the Customs Act, 1962.
The Directorate of Revenue Intelligence (DRI), Lucknow commenced an investigation into the classification of similar rail-related vehicles imported by Alstom Transport India Ltd. The appellant received summons, produced invoices, Bills of Lading, Bills of Entry and catalogues, and subsequently paid differential IGST of ₹91,50,763 and interest of ₹19,84,648 under protest on 04.06.2019, informing DRI on the following day.
A show cause notice dated 29.07.2020 proposed rejection of the classification adopted by the appellant and reclassification of the imported goods under CTH 8709 1100. It sought recovery of differential IGST under Section 28(4) of the Customs Act, 1962, interest under Section 28AA and penalty under Section 112 or Section 114A. The adjudicating authority confirmed the differential IGST demand along with interest and imposed redemption fine and penalty, leading to the present appeal.
