DIC India Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
Material Facts: The appellant imported “SCRIPTANE PW 28/32H (Petroleum Hydro-treated Middle)” and classified the goods under Customs Tariff Heading (CTH) 2709. During February 2010 to September 2010, the appellant filed 17 Bills of Entry claiming the benefit under Serial No. 487 of Notification No. 21/2002-Cus. dated 01.03.2002, under which Basic Customs Duty was payable at 5% and Countervailing Duty (CVD) at nil. These Bills of Entry were finally assessed by Customs.
Subsequently, the appellant filed two additional Bills of Entry dated 25.08.2010 and 17.09.2010 with the same classification. The Department initiated an enquiry, provisionally assessed these consignments under CTH 2710, and collected BCD at 5% and CVD at 14%.
Samples drawn in 2010 were sent to the Chemical Examiner, but no report was issued. After about two and a half years, another sample from a consignment imported in February 2013 was sent to IIT Kharagpur, whose report dated 26.04.2013 opined that the sample fell under Group-B corresponding to CTH 2710.
Based on this report, a show cause notice dated 26.12.2013 proposed recovery of Rs. 52,42,872/-, along with interest and penalty.
Procedural History
The Commissioner of Customs confirmed the proposed duty demand, interest and imposed:
- penalty of Rs. 1,00,00,000/- under Section 114A of the Customs Act, 1962;
- confiscation of goods covered by all 19 Bills of Entry; and
- redemption fine in lieu of confiscation.
The appellant challenged the order before CESTAT Kolkata.
