Certificate of origin under SAFTA controls preferential exemption unless shown false, invalid, cancelled or withdrawn.

A valid certificate of origin issued by the designated authority of the exporting contracting State and verified by the Revenue was treated as sufficient for SAFTA preferential exemption, and customs authorities could not disregard it on their own assessment of origin or value addition absent proof that the certificate was false, invalid, cancelled or withdrawn. Mere buyer-seller correspondence, alleged inflated value, or processing of imported crude palm oil before export was held insufficient to defeat the certificate. On that basis, denial of the exemption under Notification No. 99/2011-Cus. was unsustainable, and the consequent demand, confiscation and penalties could not be maintained.

---

---

Issues: Whether the appellants were entitled to the benefit of exemption under Notification No. 99/2011-Cus. dated 09.11.2011 for imports from Bangladesh under SAFTA, and whether denial of the exemption could sustain the consequent demand, confiscation and penalties.

Analysis: The disputed imports were supported by certificates of origin issued by the designated authority in Bangladesh, and those certificates were also verified by the Revenue from the exporting State. The record did not show that the certificates were fake, cancelled, or otherwise discredited by any competent authority. Mere correspondence between buyer and seller, the allegation of inflated value, or the fact that the exporter processed imported crude palm oil before export, was held insufficient to override the certificate of origin. The exemption scheme under SAFTA was treated as operating on the basis of the certificate issued by the competent foreign authority, and the customs authorities were not permitted to discard that certificate on their own assessment in the absence of proof that it was false or invalid.

Conclusion: The appellants were entitled to the exemption; the denial of Notification No. 99/2011-Cus. was unsustainable, and the demand, confiscation and penalties could not be maintained.

Final Conclusion: The proceedings against the appellants were set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: Where a valid certificate of origin issued by the designated authority of the exporting contracting State is verified and remains uncancelled, customs authorities cannot deny preferential exemption by independently reappraising origin or value addition unless the certificate is shown to be false, invalid or withdrawn by the competent authority.

---