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2022 (8) TMI 112 - AT - CustomsLevy of Anti-dumping duty - hot rolled flat products of steel otherwise plated or coated with zinc - exemption in terms of Notification No. 44/2016-Cus. (ADD) dated 8.8.2016 and Notification No. 17/2017-Cus. (ADD) dated 11.5.2017 - levy of interest and penalty - HELD THAT - It can be seen that the issue is as to whether the goods are coated with zinc and is excluded from the levy of anti-dumping duty as per Notification No. 17/2017-Cus. (ADD). During the pendency of the appeal, the appellant had filed an application to send the sample of the goods for chemical analysis. The test report issued by the Metal Lab dated 22.1.2022 shows that the goods are plated with zinc. The case put forward by the assessee succeeds. For this reason, the demand of anti-dumping duty along with interest cannot sustain. The appeals filed by the department contending that penalty has to be imposed under sec. 114A of the Customs Act, 1962 does not survive - The appeals filed by the department are dismissed.
Issues involved: Whether goods are coated with zinc and excluded from anti-dumping duty as per Notification No. 17/2017-Cus. (ADD); Whether the demand of anti-dumping duty and interest is valid; Whether penalty under sec. 114A of the Customs Act, 1962 should be imposed.
Analysis: 1. Issue 1 - Goods coated with zinc and exclusion from anti-dumping duty: The appellant, M/s. V.K. Industrial Corporation Ltd., imported 'hot rolled painted steel plates' and faced a Show Cause Notice for anti-dumping duty. The appellant argued that the goods were coated with zinc and thus exempt from the duty as per Notification No. 17/2017-Cus. (ADD). The adjudicating authority initially confirmed the duty but dropped the penalty proposal. The appellant sought a chemical analysis, and a test report confirmed zinc plating. The Tribunal found in favor of the appellant, setting aside the duty demand as the goods were indeed coated with zinc, exempting them from the duty. 2. Issue 2 - Validity of anti-dumping duty and interest: The Tribunal, based on the chemical analysis confirming zinc plating, concluded that the demand for anti-dumping duty along with interest was not sustainable. The impugned order confirming the duty and interest was set aside, and the appeal by the assessee was allowed with any consequential reliefs. 3. Issue 3 - Imposition of penalty under sec. 114A: The department had filed separate appeals seeking to impose a penalty under sec. 114A of the Customs Act, 1962. However, since the Tribunal ruled in favor of the appellant regarding the anti-dumping duty issue, the appeals by the department for imposing penalties were dismissed. The Tribunal's decision rendered the penalty imposition unnecessary, and thus the department's appeals were not upheld. In conclusion, the Tribunal's judgment favored the appellant, M/s. V.K. Industrial Corporation Ltd., by ruling that the goods were coated with zinc and therefore exempt from anti-dumping duty. The demand for duty and interest was set aside, and the department's appeals for imposing penalties were dismissed. The decision was pronounced on 10.6.2022 by the Tribunal members, Hon'ble Ms. Sulekha Beevi C.S. and Hon'ble Shri P. Anjani Kumar.
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