2012 (1) TMI 157 - AT - Customs

Summary

Issues Involved:
1. Eligibility for concessional rate of duty under Notification No. 73/2005-Cus.
2. Validity of the certificate of origin under India-Singapore Comprehensive Economic Cooperation Agreement (ISCECA).
3. Applicability of extended period of limitation and penal action.

Summary:

1. Eligibility for Concessional Rate of Duty:
The appellant, M/s. Jesons Industries Ltd., imported Butyl Acrylate Monomer from Singapore, claiming the benefit of Notification No. 73/2005-Cus., dated 22-7-2005, based on certificates of origin issued under ISCECA. However, it was later found that the goods were not of Singapore origin, making them ineligible for the concessional rate of duty. The original adjudicating authority ordered confiscation of goods, confirmed the demand of duty, and imposed penalties.

2. Validity of Certificate of Origin:
The appellants argued that the certificates of origin were issued by the Director of Customs, Singapore, and that any misstatement or suppression of facts was by M/s. Marubeni or M/s. NU Alliance, not their employees or agents. They relied on various judgments to support their case. However, the Tribunal found that the judgments cited were not applicable as the case involved suppression or misdeclaration with the intention to avail concessional duty. The Tribunal emphasized that any prudent importer should ensure the genuineness of the certificate, and the appellant's plea of ignorance was not acceptable.

3. Applicability of Extended Period of Limitation and Penal Action:
The appellant opposed the charges of fraud and misdeclaration. The Tribunal referred to the report from Singapore Customs, which confirmed that the certificates were obtained by fraud and misdeclaration. The Tribunal also cited the case of DSM Anti-Infectives India Ltd., which held that the extended period of limitation could be invoked in cases of fraud. The Tribunal concluded that the appellant could not be absolved of the charges and upheld the Order-in-Original issued by the Commissioner of Customs, Kandla, rejecting the appeals filed by the appellants.

Conclusion:
The Tribunal upheld the original adjudicating authority's decision, confirming the demand of duty, confiscation of goods, and imposition of penalties, rejecting the appeals filed by M/s. Jesons Industries Ltd. (Pronounced in Court on 18-1-2012).