2024 (7) TMI 1007 - AT - Customs

100% EOU - Classification of imported goods - Indonesia Robusta Coffee Beans 30/70 - to be classified under Customs Tariff Heading 09011149 or under CTH 09019010? - HELD THAT - The very same issue came up before this Tribunal in Artistic Stone (P) Ltd. Versus Commissioner of Customs Kandla 2006 (8) TMI 451 - CESTAT NEW DELHI and it is held that it is for the concerned authority under Special Economic Zone to consider the request of the EOU to import raw materials suitable for manufacture of export products and to ensure fulfilment of export obligations as per the norms issued from time to time and accordingly remanded the matter to allow the appellant to produce amended procurement certificate from the concerned authorities under Rule 5(1)(a) of the Customs (Import of Goods at Concessional Rate of Duty) Rules 2017. This Tribunal has earlier considered the issue and when there is an allegation of change of description and HSN code the matter was remanded to adjudication authority with a direction to the importer to produce amended procurement certificate from the concerned authority. Considering the provisions if there is change of description from declaration made by the importer an opportunity should have been extended to the importer to accordingly obtain the amended procurement certificate from competent authority rather than ordering confiscation of the goods. The impugned order is set aside and the case is remanded to the Commissioner for de-novo adjudication. In case the Appellant is not satisfied with the test report relied by the Adjudication Authority respondent is directed to extend an opportunity to re-test the samples through another accredited agency - appeal disposed off by way of remand.

Summary

Issues: Classification of imported goods under Customs Tariff Heading, Admissibility of test report from Coffee Board, Denial of Notification benefit, Imposition of duty, Confiscation of goods, Redemption fine, Imposition of penalty, Waiver of show cause notice, Remand for de-novo adjudication.

The judgment by the Appellate Tribunal CESTAT Bangalore involved the classification of imported goods by M/s. Vidya Herbs Private Limited, a 100% Export Oriented Undertaking (EOU), under Customs Tariff Heading. The dispute arose when the goods declared as 'Indonesia Robusta Coffee Beans 30/70' were reclassified as 'Coffee Husk/Bits' based on a test report from the Coffee Board indicating deviations from standards. The Adjudicating Authority imposed customs duty, confirmed a demand, and imposed penalties and fines. The appellant contended that the goods were misclassified without proper examination and verification of documents. The appellant argued that as an EOU, they were entitled to import raw materials under the Foreign Trade Policy. The appellant cited precedents where similar issues were resolved in favor of the appellant. The Authorized Representative supported the impugned order's findings and referred to previous tribunal decisions. The Tribunal considered the arguments, noted the pending issue before the High Court, and reserved the order. The appellant's claim of the order being unsustainable due to the lack of a show cause notice was addressed, stating that the appellant waived the notice. The Tribunal emphasized the need for the concerned authority to consider requests from EOUs for importing raw materials and remanded the case for de-novo adjudication. The Tribunal directed the appellant to produce an amended procurement certificate for reevaluation and extended the opportunity for re-testing samples through another agency if needed. The Tribunal instructed the Adjudication Authority to complete the proceedings promptly after the appellant's compliance with the directives. Consequently, the impugned order was set aside, and the appeal was disposed of accordingly.