P.C. Jeweller Limited Vs Principal Commissioner of Customs ACC (Import) (CESTAT Delhi)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, disposed of multiple appeals arising from a common order concerning imports of diamond-studded gold jewellery from Thailand during 2010-11 and 2011-12. The appellant had imported the goods under CTH 711319 and claimed concessional customs duty under Notification No. 85/2004-Custom dated 31.08.2004 read with Notification No. 101/2004-Custom (NT) dated 31.08.2004 by furnishing Certificates of Country of Origin (COO) with each Bill of Entry. The goods were assessed and cleared without objection at the time of import. Subsequently, the Directorate of Revenue Intelligence (DRI) investigated the imports, alleging that the COOs reflected inflated local value addition in Thailand. Based on its investigation and third-party statements recorded in India, show cause notices were issued proposing denial of the notification benefit, recovery of duty and imposition of penalties, which were confirmed by the adjudicating authority. The appellants challenged the order before the Tribunal.
The appellants contended that the issuing authority in Thailand had never been asked to verify the authenticity or correctness of the COOs and relied upon the Tribunal’s earlier decision in Hazoorilal & Sons Jewellers Private Limited. The Revenue argued that the mandatory regional value content requirement had not been established and that the declared local value addition was misrepresented.
