2023 (7) TMI 723 - AT - Customs

Eligibility to import all types of goods including Coffee husk - classifiable under the CTH 09019010 - Rule 5(1)(a) of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 - HELD THAT - In the present case as evident from the application for Procurement of Goods under the said Rule, the importer obtained sanction for import of Indonesia Robusta Coffee Beans having CIF Value of Rs. 65,38,813/-. As per the invoice, description of the goods is shown as Indonesia Robusta Coffee Beans and as per the description of the consignment mentioned in certificate of quality issued by credited agency it shows bags of Indonesian Robusta Coffee Beans. As per Chapter 9 of Customs Tariff, heading; 0901 reads; Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion . Bulk import of Rob Cherry is classified under 09011145 and when imported goods consisting only of coffee husks and skins they are classified under 09019010. However, in the present import, there are discrepancies in the description of goods and when the said discrepancy was brought to the notice of the importers, the appellant vide, letter dated 10.12.2022 admitted that the cargo was not matching with the cargo declared in the documents and also admitted that the cargo was found to be coffee Husk/bits, which is classified under CTH 09019010. Rule 5(1)(a) of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 cast duty on importer to ensure import of goods as approved and if any change in description/classification, importer should have sought necessary amendment by submitting details of such goods from the appropriate authority. In the present situation, goods even if they are considered as Coffee husk/Bits as alleged, they are legally permitted subject to fulfillment of condition 2A under General Exemption No. 69, Notification 52/2003-Cus. Dated 31.03.2003. The importer can approach the concerned authority and submit a fresh application under Rule 5(1)(a) of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, providing the information as was found by the customs authorities on examination of the goods and on submission of the amended/revised permission the Customs authorities to release the goods by extending the benefit of Notification No. 52/2003-Cus. Dated 31.03.2003 - Appeal allowed.

Summary

Issues involved: Mis-declaration of imported goods leading to denial of exemption notification and confiscation of goods.

Summary:

Issue 1: Mis-declaration of imported goods
The appellant, a private limited company engaged in manufacturing and export, imported "Indonesia Robusta Coffee Beans" as raw material for production. However, upon inspection, Customs officers found the goods to be "Coffee Husk/Bits" instead. The Adjudication Authority confirmed the mis-declaration, leading to denial of exemption notification and confiscation of goods. The appellant argued for exemption under Chapter 9, General Exemption No. 69, Notification No. 52/2003-Cus. The Authorized Representative for the Respondent highlighted the mis-declaration issue and the appellant's admission of the discrepancy. The Tribunal noted the discrepancies in the goods' description and the importer's admission of the error. The Tribunal emphasized the duty of the importer to ensure accurate import declarations and the need for necessary amendments if discrepancies arise.

Issue 2: Eligibility for exemption and procedural compliance
The Tribunal considered the eligibility of the appellant to import goods, including Coffee husk, under the Customs rules. While acknowledging the liberal import policy for Export Oriented Undertakings (EOUs), the Tribunal stressed the importance of fulfilling conditions for exemption and ensuring compliance with import procedures. The Tribunal directed the importer to approach the relevant authority for a fresh application under Customs rules, providing accurate information. Failure to produce revised permission would lead to sample testing by Customs authorities and appropriate orders by the Adjudication Authority based on test results.

In conclusion, the Tribunal set aside the impugned order and instructed the importer to follow proper procedures for import, emphasizing the need for accurate declarations and compliance with Customs rules to avail of exemptions.