Case Law Details
N and N Traders Vs Assistant Commissioner of Customs (Group 1) (Madras High Court)
Introduction: The Madras High Court’s ruling in the case of N and N Traders Vs Assistant Commissioner of Customs (Group 1) has stirred interest among importers and legal experts alike. The decision focuses on the non-suspension of preferential tariff treatment on imported Areca nut under section 28DA of the Customs Act. This article delves into the critical aspects of the judgment to provide a comprehensive understanding of its implications.
The Core Issue: The crux of the case revolves around a Bill of Entry filed by N and N Traders for clearing an imported consignment of Areca nut. The petitioner claimed an exemption under Notification No. 26/2000-Cus, arguing for a nil duty rate. However, the petitioner was asked to furnish a Bank Guarantee and a bond, a requirement that they found disputable.
Preferential Tariff and Certificate of Origin: The petitioner had presented a Certificate of Origin from the Assistant Director of Commerce, Colombo, under the Indo-Sri Lanka Free Trade Agreement (ISFTA). This Certificate had not been revoked and was the basis for claiming a preferential tariff rate. It was argued that the goods should have been cleared based on this certificate, especially when similar imports were cleared both before and after this consignment.
Legal Provisions Involved: Section 28DA of the Customs Act allows the Proper Officer to temporarily suspend preferential tariff treatment if the importer fails to provide requisite information. The learned counsel for N and N Traders argued that no such information was asked for, thereby negating the need for a Bank Guarantee and bond.
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