Case Law Details
M M Trading Company Vs C.C.-Mundra (CESTAT Ahmedabad)
CESTAT Ahmedabad held that goods imported are classifiable under tariff heading 27101290 which are allowed to be imported only through State Trading Enterprises (STE), as per the Foreign Trade Policy (FTP) condition 5 of chapter 27. Redemption fine and penalty justified as condition of the policy for importing goods not satisfied.
Facts- The appellant filed BOE for clearance of 198.32 Mts of “Industrial Composite Mixture” classifying the goods under CTH 27101990, assessable value of which was declared as Rs.82,57,556/- involving duty of Rs.20,22,276/- The goods were given first check with order to draw sample and forward the same to CRCL, Kandla for testing. As per the test report of the Customs Laboratory, Kandla, is concerned, the imported goods were found “Light Oil, and not “Industrial Composite Mixture”.
The adjudicating authority found that the imported goods are classifiable under tariff heading 27101290 i.e. ‘Other of sub heading Light Oils and Preparations’. Further, the goods falling under tariff heading 27101290 are allowed to be imported through State Trading Enterprises (STE) only as per Policy condition-5 of Chaptr-27 of ITC (HS), Schedule-1. However, the appellant is neither STE nor they have submitted any documents showing grant of such rights by the DGFT to import or export any of the goods notified for exclusive trading through STEs, therefore, they have violated the policy conditions of Foreign Trade Policy.
Accordingly, the adjudicating authority rejected the classification of the goods under CTH read with ITC (HS) Schedule-1’s heading 27101990 and ordered to classify the same under CTH 27101290 and ordered to charge appropriate duty; confiscated the goods and also imposed penalty.
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