Emami Agrotech Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that Social Welfare Surcharge would be nil in case where the aggregate of customs duties is zero. Thus, Social Welfare Surcharge not payable when Basic Customs Duty payable is zero.
Facts-
The Appellant is engaged in the business of refining and selling edible oils. The Appellant imports Crude Edible Oil from various countries and carries out refining thereof at its manufacturing facility located at Haldia (West Bengal). During the relevant period, the Appellant had filed 82 Bills of Entry (as per detail hereinabove) on the EDI Portal for the import of 82 consignments of crude palm oil by availing benefit of Exemption Notification Nos. 24/2015 – Cus. and 25/2025 – Cus. both dated 08.04.2015 issued under MEIS/SEIS Scheme, which are export promotion schemes. While BCD stood specifically exempted under these notifications the Appellant was constrained to pay Social Welfare Surcharge (SWS) in cash for causing clearance of these consignments. The Appellant was of the view that since BCD was not collected pursuant to the exemption (supra), no liability for SWS could have been determined with reference to the notional BCD. As the BCD was “Zero”.
Consequently, the Appellant challenged the assessments in each of these BOEs by filing the appeals before the Ld. Appellate Commissioner and seeking refund of SWS paid in cash on multi farious grounds. These appeals were rejected. Aggrieved against the said orders, the appellant is before us.
