TaxTMI 
TaxTMI 
2026 (7) TMI 1063
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....r Indo-Thailand Free Trade Agreement can be extended to the appellant. 2. The brief facts are the appellant-M/s Neelkanth Jewellers is engaged in manufacture and trading of gold jewellery and imported gold from Thailand duly supported by the original Certificate of Origin (COO) issued by the designated authority in Thailand by classifying the goods under the Customs Tariff Heading (CTH) 7113 19. Alleging that appellant has violated the conditions of Notification, Additional Director, DRI has proceeded to issue a show cause notice dated 28.02.2013 proposing to demand differential Customs Duty amounting to Rs. 14,36,747/- under Section 28(4) of the Customs Act, 1962, proposing to levy interest under Section 28AA of the Customs Act, 1962, a....
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....ellant submits that the Governments of India and Thailand have entered into a Treaty called "Indo-Thailand Free Trade Agreement" under which certain specified goods can be imported from Thailand to India by Indian importers without having to pay the basic customs duty and countervailing duty. The CBEC has issued notifications under the Customs Act, 1962 to give effect to the above said Agreement by issuing Customs Notification No. 85/2004-Cus, dated 31.08.2004 as amended from time to time read with Customs Non-Tariff Notification No. 101/2004-Cus. (N.T.), dated 31.08.2004. The imports under the above said Agreement are liable only for levy of Special Additional Customs Duty of 1%. One of the products specified under the above said Free Trad....
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....; (c) The exporter in Thailand has furnished the necessary Certificate of Origin issued by the designated Government authority in Thailand; (d) The imported gold jewellery under the Indo-Thailand Free Trade Agreement was received by the appellant at Air Cargo in Bangalore Airport and covered by duly filed five Bills of Entry containing all the relevant details for customs assessment and facilitation of clearance; (e) The necessary Certificate of Origin was also (COO) was submitted to customs authorities in support and evidence of duty-free import; (f) The Customs Assessing Authority verified the import documents, assessed the same and allowed clearance of the imported goods for home consumption. ....
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....f classification criterion between the export product and all non-originating materials used in its production. ............." 7. Learned Counsel further draws our attention to the conditions applicable to goods falling under Customs Tariff Heading (CTH) 7113 19 and also draws our attention to Annexure B to Interim Rules of Origin and submits that the said Rule prescribes the method of determining the origin of products eligible for the preferential tariff concessions for the Early Harvest Scheme pursuant to the Framework Agreement between the Republic of India and the Kingdom of Thailand and as per said Rule 15, the only method of discarding the credibility of Country of Origin (COO) certificate is to follow the Rule 15 that to....
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....for the Early Harvest Scheme) of the Interim Origin Rules, it has been decided to make a reference to the designated authority of Kingdom of Thailand." 8.1 Learned Counsel submits that no steps were taken to comply with the above said provision and Adjudication Authority has considered the invoices to find out the value addition and by completely excluding the value of materials used for manufacturing the goods. Thus, it is alleged that value addition is lower than the prescribed value addition of 20%. Such method is also not in accordance with law. Learned counsel further submits that the issue is no more res integra and covered by the decision of the Tribunal in the case of Romil Jewelry Vs. Commissioner of Customs, Air Cargo Complex, ....