Bright Metal India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)
Summary: The Customs, Excise & Service Tax Appellate Tribunal, Delhi considered six connected appeals arising from a common order concerning import of Brass Scrap “Pallu” declared as originating from UAE but found to have originated from Pakistan. The importer had filed Bill of Entry No.6601963 dated 09.12.2021 at ICD, CONCOR, Kanakpura, Jaipur, declaring the goods under CTH 74040022 and self-assessing Basic Customs Duty at 2.5%, Social Welfare Surcharge at 10% and IGST at 18%. Although the importer produced a Bill of Lading, Pre-Shipment Inspection Certificate and other documents indicating UAE origin, container tracking through the Pakistan International Container Tracking Portal showed that the container had originated from Pakistan with the same seal number. Physical examination also revealed worn and torn PP bags bearing references to Karachi, Pakistan and Korangi Industrial Area.
The Tribunal found that the container had moved from Karachi to Jebel Ali and thereafter to India without unloading at Jebel Ali and that the Pre-Shipment Inspection Certificate showing inspection at Sharjah was therefore fake or forged. The Tribunal held that Notification No. 05/2019-Customs dated 16.02.2019, issued under Section 8A of the Customs Tariff Act, 1975, required goods originating in or exported from Pakistan to be classified under CTH 98060000 with Basic Customs Duty at 200%. It rejected the importer’s plea of ignorance, observing that a regular and experienced importer is responsible for declaring the country of origin and complying with statutory requirements. The goods were accordingly held liable to confiscation under Section 111(m) of the Customs Act, 1962, and penalties under Sections 112(a)(ii) and 114AA were upheld against the importer company and its Director.
