2024 (7) TMI 1007 - AT - Customs

Indonesia Robusta Coffee Beans classification dispute under CTH 09011149 vs 09019010 remanded for fresh adjudication

M/s. Vidya Herbs Private Limited Versus The Commissioner of Customs, New Customs House, Mangalore

M/s. Vidya Herbs Private Limited Versus The Commissioner of Customs, New Customs House, Mangalore - TMI 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.