Case Law Details
Sterling Agro Products Vs Commissioner of Customs (CESTAT Hyderabad)
CESTAT directs authority to give an option to appellant to redeem goods on payment of fine in lieu of confiscation & Reduces Penalty
In a notable decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) Hyderabad has given Sterling Agro Products an option to redeem their confiscated goods by paying a fine. Additionally, the penalty initially levied has been reduced. This comes as a result of the case Sterling Agro Products Vs Commissioner of Customs, with the judgment delivered on July 27, 2023.
Analysis: The main issue revolved around the nature of the imported goods by Sterling Agro Products – whether they were “prohibited goods”, thus making them liable for confiscation. The Adjudicating Authority asserted that the imported goods did fall under the prohibited category due to non-compliance with the Minimum Import Price (MIP) criteria.
However, the CESTAT took into account several mitigating factors in the case. One, the imports were intended for re-export, not domestic use. Two, Sterling Agro Products held a bona fide belief that the MIP conditions were not applicable to them, given their status as a 100% Export Oriented Unit (EOU). Further, there was no customs duty involved due to EOU’s exemption.
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