The Allahabad Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) minimum import price fixed by Directorate General Of Foreign Trade (DGFT) cannot be called tariff value and reduced the redemption fine.
The bench of P.K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has observed that the minimum import price fixed by the DGFT could not be called the tariff value as has been done by the impugned order. The Tariff Value as defined by the Custom Act, 1962 is the value of the goods fixed by the Board and could not have been fixed by any DGFT. Minimum Import Price fixed by the DGFT is an indicative minimum price of the goods imported and the goods if imported below this price could not have been allowed clearance for home consumption. However this price could not have been the basis for rejection of the transaction value declared by the importer.
The appellant/assessee appellant had declared the imported goods as Processed Betel Nuts, without specifying the processes which had been carried out. The classification claimed by the appellant under21069030 is in respect of “Betel Nut Products Known as Supari”.
The declaration made by the appellant was “Process Betel Nuts” and would not qualify for classification under Heading 21069030 as per supplementary note 2 to chapter 21.
As per DGFT Notification No 20/2015-2020 dated 25.07.2017 minimum import price of the goods falling under EXIM Code 080280 of Chapter 8 of ITC (HS) was fixed at Rs 251 per kg.
Thus, the department was of the view that appellant had imported these goods in violation of Foreign Trade Policy by misclassifying them under CTH 21060930 with sole intention of avoiding the assessment of the said goods on the tariff value. The goods were seized as per the provisions of section 110 of the Customs Act, 1962.
The appellant contended that its request for re-export of the goods had been accepted by the adjudicating authority. It is a settled position in law that where the goods are allowed for re- export redemption fine should not be imposed.
The tribunal reduced the redemption fine to 5 of the value determined in the order on the basis of minimum import price fixed by the DGFT. Thus redemption fine in case of goods imported as per B/E No 2329397 is reduced to Rs.3,45,000 and goods imported to Rs.7,50,000. Thus the total redemption fine is reduced to Rs.10,95,000.
Case Details
Case Title: M/s Ananya Overseas Versus Commissioner of Customs, Noida
Case No.: Customs Appeal No.70089 of 2022
Date: 06/01/2025
Counsel For Appellant: Pradeep Jain
Counsel For Respondent: Tuleshwar Prasad
