TaxTMI 
TaxTMI 
TaxTMI 
2021 (6) TMI 643
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.... (Act) on 01.03.2021. Prior thereto, the respondent had raised a dispute in regard to the declared value of the consignment that the petitioner had accepted. The petitioner also undertook to procure a no objection certificate (NOC) from the Food Safety and Standards Authority of India (FSSAI). Accordingly, an agency appointed under the provisions of the Food Safety and Standards Act, 2006 (FSSA Act), examined the consignment and opined that the same conformed to the standards laid down under the applicable regulations. No objection was given for the release of the consignment from the port. 3. The petitioner remitted the duty as assessed under Section 17 and sought the issuance of an order for release of the consignment, referred to as an 'out-ofcharge' order. The COO produced was defaced by the appropriate authority as a precursor to release of the goods and physical examination of the goods waived. While the petitioner was thus awaiting release of the goods, an objection came to be raised by R2 in regard to the authenticity of the COO issued. 4. The first point raised by the authority was whether the date stamped upon the COO was '07' or '17'. A clarification dated 19.03.2021 ....
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....reme Court in the case of Mohinder Singh Gill and Another Vs. The Chief Election Commissioner and Others (1978 AIR 851) to the effect that an order, to be valid, has to speak for itself, containing reasons to sustain the same. It has to stand or fall on its own merit. It cannot be bolstered or supported by reasoning supplied as an afterthought, either by way of oral argument or by way of counter, as in the present case. To quote the Bench, 'Orders are not like old wine becoming better as they grow older'. 9. According to the petitioner, if R2 entertained doubts about the veracity of the COO, he should have initiated an enquiry with the competent Verification officer of the contracting State through the Board. For this purpose, reliance is placed upon the procedure set out under the Customs (Administration on Rules of Origin under Trade Agreements), Rules 2020 (CAROTAR). This has admittedly not been done till date though the import in question was in early February 2021. 10. Revenue, for its part, states that a reference will be made to the competent authority for determination of state of origin only after the petitioner provides 100% security for the differential duty. For this ....
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....ner of Customs or the Commissioner of Customs may, for reasons to be recorded in writing, disallow the claim for preferential rate of duty, without further verification. (5) Where the preferential rate of duty is suspended under sub-section (4), the proper officer may, on the request of the importer, release the goods subject to furnishing by the importer a security amount equal to the difference between the duty provisionally assessed under section 18 and the preferential duty claimed: Provided that the Principal Commissioner of Customs or the Commissioner of Customs may, instead of security, require the importer to deposit the differential duty amount in the ledger maintained under section 51A. . . . . 12. Section 28-DA is a self-contained code setting out the scheme in regard to claim of preferential rate of duty and the procedure to be followed in this regard. Sub-Section (1) provides for a claim in regard to preferential rate of duty supported by such information as is necessary to support the claim. Sub-Section (2) reiterates the responsibility cast upon the importer to ensure that the goods have indeed been imported only from the stated destination, notwithstanding a....
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....ection 51A. 16. This puts paid to the argument of Mr.Gunalan that a reference will be made under CAROTAR to the Verification Authority only if the petitioner remits 100% of the duty quantified. This submission is liable to be rejected straightaway in light of Section 28-DA (5) which requires the importer to furnish security for 100% differential duty only as a pre-condition to release of the goods. 17. The scheme of Section 28-DA does not permit raising of a demand for security for initiation of verification but only for release of the consignment. Circular No. 42 of 2020 to the extent to which it is transgresses the statutory scheme under Section 28-DA, particularly sub-Sections (4) and (5) thereof, is an excess of authority and is bad in law. 18. CAROTAR has been notified specifically to set out the procedure and facilitate exchange of information in case of issues arising from the application of the Articles of a Trade Agreement including conflicts in rate of duty, one by an importer and the other by the revenue. Regulation (6) provides for a request for verification to be made by the proper officer and is extracted below: 6. Verification request.- (1) The proper officer m....
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....ty amount equal to the difference between the duty provisionally assessed under section 18 of the Act and the preferential duty claimed. (5) All requests for verification under this rule shall be made through a nodal office as designated by the Board. (6) Where the information requested in this rule is received within the prescribed timeline, the proper officer shall conclude the verification within forty five days of receipt of the information, or within such extended period as the Principal Commissioner of Customs or the Commissioner of Customs may allow: Provided that where a timeline to finalize verification is prescribed in the respective Rules of Origin, the proper officer shall finalize the verification within such timeline. (7) The proper officer may deny claim of preferential rate of duty without further verification where: (a) the Verification Authority fails to respond to verification request within prescribed timelines; (b) the Verification Authority does not provide the requested information in the manner as provided in this rule read with the Rules of Origin; or (c) the information and documents furnished by the Verification Authority and available on re....