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2025 (2) TMI 968
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....The case of the Customs Department is that, M/s V.V. Minerals between January 2009 to February 2012 imported Portland cement from manufacturer at Pakistan through Tuticorin port. The transactions were by High Sea Sales. Out of 33 bills of entry, the importer M/s V.V.Minerals availed concession rate of Counterveiling (CVD) under clause IC of the Notification No: 04/2006 C.E. Dated 01/03/2006 as amended and for 10 Bills of Entry, they availed concession rate of duty under Claus IA (ii) of the said Notification. 3. Under the Notification No:04/2006 the importer of cement is eligible for concession rate of duty on complying the following conditions:- a) The concessional rate of duty under Clause 1A(i) is available to the Cement whos....
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....als participated in the adjudication and gave a statement admitting import of cement bags of 50 kgs retail packing and not in bulk as envisaged in the concession notification. Also admitted that they did not declare the purpose for which the cement was imported. This was again violation of the concession notification which says that the cement imported must be used for personal use of the importer and not to be sold. Further for concessional rate of duty the price of 50 kg bag must not exceed Rs. 190/-. Whereas it was found that the Respondent had paid more than Rs. 190/- for a bag of 50 kg. Neither, the cement was purchased directly from the manufacturer. 5. Therefore, Order-in-Original No:37/2014 dated 31.10.2014 was passed by the Adju....
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....was granted to several importers of packed cements. That was not construed as mis-declaration. After three years, the department cannot open the case alleging duty concession wrongly bestowed. Relying on the judgement of the Supreme Court in Commissioner -vs- Sab Nife Power Systems Ltd ( 2002 (141) ELT A 95 (SC), it was contended that, there is no misdeclaration or suppression with intent to evade duty merely because the exemption claimed found to be inadmissible by Customs Authorities later. The CESTAT allowed the Appeal vide Common Final Order dated 31.01.2008 and set aside the order in original passed by the adjudicating authority as confirmed by the appellate authority. 8. Being aggrieved, the Customs Department had filed the C.M.A(M....
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.... dated 01.03.2006 is extracted in para No.3 above for easy reference. The term packaged commodities for Institutional/industrial purpose is defined and explained in Rule 2A (b) under Chapter II of Weights and Measures (Packaged Commodities) Amendment Rule, 2006 as under:- Explanation: - For the purpose of this rule, i) "Institutional consumer means" those consumers who buy packaged commodities directly from the manufactures/packers for service industry like transportation (including Airways, Railways), Hotel or any other similar service industry. ii) "Industrial consumer" means those consumers who buy packaged commodities directly from the manufacturers/packers for using the product in their industry for productio....
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....ent and call for post-importation actual user confirmation. This was not done in the present case will show that the assessing officer is satisfied with the claim made by the appellants. The Revenue can initiate demand proceedings of differential duty by denying the exemption later, only upon unearthing the evidences of misuse of such end-use condition. Such evidences have not been brought before us. The impugned orders observe that the appellants failed to establish actual user. No such condition regarding manner establishing such fact was put at the time of assessment and clearances. The claim in the Bills of Entry at the time of import as well as in the written submissions made before the lower authorities by the appellant-importer categ....
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....cturer in the bills of entry may be a condition required for clearing the goods, not for concessional rate of duty. To avail concession rate of duty, it should be purchased directly from the manufacturer who had satisfied the conditions mentioned in the notification. In case of High Sea Sales (HSS), it is not the manufacturer who sell the goods contrarily, it is the Middleman or a Trader for commission who sell the goods. Likewise, clearance of goods by the Examiner of Customs Department will not be a ground to set aside the order of withdrawal of duty concession on the ground of mis-declaration if evasion is found subsequently. 14. The order of CESTAT by ignoring the admission of the importer that the cement imported through High Sea Sa....