Deep Traders Vs Commissioner of Customs-Mundra (CESTAT Ahmedabad)
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Ahmedabad, examined appeals concerning the import of Technical Grade Urea (TGU) by the appellant during the period April 2012 to April 2015 on a high seas sales basis through State Trading Enterprises (STEs), specifically MMTC, without holding a licence from the Director General of Foreign Trade (DGFT).
The department initiated investigation based on information from the Directorate of Revenue Intelligence (DRI), alleging violation of the Foreign Trade Policy. Show cause notices were issued proposing confiscation of imported goods under Section 111(d) of the Customs Act, 1962, and imposition of penalty under Section 112(a)(i). The adjudicating authority ordered confiscation of goods but did not impose redemption fine since the goods were not available, and imposed penalties. The Commissioner (Appeals) upheld these orders, leading to the present appeals before the Tribunal.
The appellant contended that it had obtained permission from the Ministry of Chemicals and Fertilizers to import TGU for industrial use and that no condition prohibited procurement on a high seas sales basis through STEs. It argued that it had complied with all conditions, that customs duty had been duly paid, and that there was no violation attracting confiscation under Section 111(d). The appellant further submitted that penalty under Section 112(a)(i) was not applicable as there was no contravention, and that the show cause notices lacked specific allegations detailing the alleged violation.
