Case Law Details
Fashion Accessories Vs Commissioner of Customs (CESTAT Ahmedabad)
CESTAT Ahmedabad held that penalty duly imposable for mis-classification of export goods with the intent of claiming higher incentives under MEIS Scheme.
Facts- The exporter, M/s. Fashion Accessories, had classified goods i.e. Quilts fitted with cotton/polyester exported by them under two different eight digit HS Codes ‘94049019’ & ‘94049099’.
Department believed that the exporter had knowingly and consistently misclassified their products under CTH 94049099 from ports other than Nhava Sheva to fraudulently avail higher rate of MEIS benefits.
A wilful “decision” to misclassify the goods with intent to wrongfully avail undue MEIS benefit was as per the department a wilful misstatement for invoking provisions of Section 28AAA of the Customs Act, 1962. Thus, reversal of benefit was done and penalties were imposed on persons involved.
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