Case Law Details
Softel Overseas Private Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata rules on Softel Overseas vs. Customs case, emphasizing substantive benefits over procedural lapses in customs duty matters.
In a recent case, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Kolkata delivered a significant order in the matter of Softel Overseas Private Limited versus the Commissioner of Customs (Port). The case revolved around the appellant seeking the benefit of Notification No.12/2012-CUS dated 17.03.2012 (Sl.No.237) but encountering a procedural lapse that led to an unintended excess payment of duty. The tribunal’s ruling sheds light on the importance of substantive benefits over procedural lapses in customs duty matters.
Background of the Case
Softel Overseas Private Limited, the appellant, filed five Bills of Entry seeking the benefit of a specific customs notification. The error occurred when they failed to claim the benefit of Notification No.46/2011-CUS dated 01.06.2011 (Sl.No.440), which would have entitled them to a lower duty rate of 5%, as opposed to the 7.5% duty paid at the time of clearance. The mistake was identified after the goods had been cleared, leading to the realization that the imported goods were eligible for the ASEAN India Free Trade Preferential Tariff rate of duty.
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