TaxTMI 
TaxTMI 
2024 (7) TMI 201
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....ATHEW The issue in these appeals of M/s Prachi Exports Pvt Ltd and Shri Gopal Aggarwal, Director of M/s Prachi Exports Pvt Ltd, against order [order-in-appeal no. 417 & 418(Gr.I)/2021(JNCH)/Appeals dated 25th May 2021.] of Commissioner of Customs (Appeals), Mumbai - II in response to upholding of demand of differential duty under section 28 of Customs Act, 1962, following denial of benefit of notification 12/2012-Cus dated 17th March 2012, along with imposition of penalties of Rs. 20,70,234/- under section 114A of Customs Act, 1962 on appellant-company and of Rs. 2,00,000/- on Shri Gopal Aggarwal under section 114AA of Customs Act, 1962, is the ostensible non-compliance with one particular aspect of rule 7 of Customs Tariff (Determinatio....
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....to say in other words, not complied with. Therefore, I hold that the importation being in contravention of Rule 7 of Country of Origin, Rule 2008, benefit of Notification 12/2012 (Sr. No. 32)is not available in case of the B/E No. 2685349 dated 11.07.2013. Accordingly, I reject the benefit of concessional duty. Hence the goods are leviable to standard rate of duty, so applicable duty is Rs.25,20,073/- as proposed in the SCN. Accordingly, I confirm demand of short levied duty amounting to Rs.20,70,2234/- u/s 28(4) of Customs Act, 1962. 17.5 Now I examine the contention of the Noticee. The Noticee have mainly contented relating to acceptance of Certificate of Origin of Rule 7 of the Notification 100/2008, stating that goods remained ....
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....y. The goods did not remain under Customs Control in the Country of transit thus condition of Rule 7(iv) has not been complied with. ....... 7. ........... I observe that it is essential condition under Rule 4 of Custom Tariff (Determination of Origin of Products under the Duty Free Tariff Preference Scheme for Lease Developed Countries) Rules, 2008 that the products covered by the said schemes shall be imported to India "DIRECTLY" from a beneficiary Country. Further under Rule 7 of these Rules. 'Direct Consignment' has been defined as: a. If it has been transported without passing through the territory, of any other country; b. The product Whose transport involves transit through one or more intermediate ....
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....been attributed to inability of the importer either to furnish documentation evincing direct dispatch from Zanzibar or, in terms of the said rules, 'deemed' direct dispatch from Zanzibar, the particularized reason appears to be that the impugned goods allegedly did, for a period, remain out of 'customs control' at Jebel Ali implying acknowledgement of eligibility to avail the benefit of the notification even in indirect dispatch to India subject to adherence to the conditions stipulated in proviso to rule 7 (at serial no. iv) of Customs Tariff (Determination of Original of Products under the Duty Free Tariff Preference Scheme for Least Developed Countries) Rules, 2008. It would, therefore, appear that other conditions in the said proviso ha....
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....e do not propose to dwell on this aspect at this stage. 5. Insofar as the contention of the appellant that the importer, M/s M/s Prachi Exports Pvt Ltd, had not been placed on notice, we do find that they were one of the notices even though no specific narration of their role has been recorded as preliminary for fastening duty liability under section 28 of Customs Act, 1962 and for imposition of penalty under section 114A of Customs Act, 1962. Nonetheless, we find also that the importer as well, as Shri Gopal Aggarwal, were both represented in the proceedings before the lower authorities, which, in our view, suffices as adequate notice. However, we find that in charging the duty along with interest as well as imposition of penalty under ....