Strict origin criteria govern FTA benefits; mismatch in the Country of Origin Certificate defeats preferential customs exemption.

FTA or preferential tariff benefits are available only when the importer strictly satisfies the prescribed origin criteria and the Country of Origin Certificate reflects the correct origin code required by the notification. In this case, betel nuts imported from Bangladesh were claimed under Notification No. 105/99-Cus., but the certificate showed origin criteria as "B" and non-origin material content of 65.83%, whereas the applicable special criteria required "D" for the claimed benefit. On that basis, the goods did not meet the notification conditions, and the exemption claim was rejected.

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Issues: Whether the imported betel nuts were eligible for the benefit of Notification No. 105/99-Cus. despite the Country of Origin Certificate showing origin criteria as "B" and the non-origin material content being 65.83%.

Analysis: The imported goods were claimed as originating from Bangladesh and the appellant sought FTA benefit under Notification No. 105/99-Cus. The claim depended on satisfaction of the prescribed origin criteria under Notification No. 73/1995 (NT), as amended by Notification No. 68/2000 (NT). The tribunal held that the relevant special origin criteria required entry of "D" in the Country of Origin Certificate when the importer claimed the special criteria under para 10 of the Schedule, whereas the certificate produced showed "B" with 65.83%. On that basis, the goods did not satisfy the prescribed origin requirements. The tribunal also rejected reliance on the earlier High Court decision cited by the appellant and accepted the revenue's position that the benefit could not be extended in the facts of the case.

Conclusion: The imported goods were not eligible for the customs notification benefit and the appeal failed.

Final Conclusion: The exemption claim was rejected for non-fulfilment of the prescribed origin criteria, and the demand-related order was sustained.

Ratio Decidendi: A claimant to FTA or preferential tariff benefit must strictly satisfy the prescribed origin criteria and the Country of Origin Certificate must reflect the correct origin code required by the notification.

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