Custom
TRT-2025-
Cestat New Delhi
Date:-30-09-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 30 September 2022
Facts –
- The Appellant, M/s Zubair Hashmi Trading, imported Colchicum (Saanjan) Grade 3 and filed Bill of Entry No.7821136 dated 11.03.2022 at Tughlakabad to clear the goods claiming the benefit of Notification No. 99/2011-Cus which exempted the goods originating in Afghanistan from the whole of duty of Customs.
- The goods were detained, documents were called for, and statements were recorded by the officers of the Commissioner of Customs (Preventive) and a Show Cause Notice was issued to the appellant which culminated in the impugned order.
- The appellant argued that they imported the goods from Herat in Afghanistan to Delhi. Since Afghanistan is a land-locked country, they were transported by road upto Chaman in Afghanistan-Pakistan border and then were again transported by another truck from Chaman to Karachi port.
- Therefore, the goods were of Afghanistan origin and hence were fully exempted by Notification No. 99/2011. On the other hand, according to the Revenue, the goods were exported from Karachi, Pakistan and hence were chargeable to duty @ 200%.
- Aggrieved, the appellant filed an appeal.
Issue –
- Whether the imported goods of Afghanistan origin imported from Afghanistan to India transiting through Pakistan as asserted by the appellant and hence chargeable to NIL rate of duty OR were they exported from Pakistan and hence chargeable to 200% duty as decided in the impugned order?
Order –
- The Tribunal observed that the Bill of Lading cannot mention Afghanistan as the Port of Loading because that is not where the goods were received by the Shipping Line. They didn’t find anything in the exemption notification requiring that the same transporter has to transport the goods from the place of export upto the final destination. Therefore, denial of the benefit of the exemption on this basis is not correct.
- It was also observed that the Country of Origin Certificate was issued by the Afghanistan Chamber of Commerce and Industries cross referencing the invoice and also endorsing the invoice on the same day.
- The Tribunal held that the chain of documents is complete to establish that the origin of the goods was Afghanistan and that they were exported from Afghanistan, transited through Pakistan, stuffed in a container in Karachi Port and transhipped in a vessel to India.
- Also the Transit Certificate was issued by the Afghanistan authorities and not by Pakistan authorities and it was held that Indian Customs cannot insist that the importer has to get a document issued by the Afghanistan Government also signed/ endorsed by the Pakistan Customs and there is no such requirement in the exemption notification.
- As far as the Bill of Lading is concerned, it is true that it does not indicate the place of receipt of the goods and only mentions the Port of Loading as Karachi. Ideally, the Shipping Line should have mentioned that it received the goods in Karachi port itself but any doubt as to which goods were shipped by the Shipping Line to India and for which the Bill of Lading was issued will be put to rest if the Goods Declaration GD-1 Form filed with the Pakistan Customs is perused as the Examination Report by the officers clearly links the goods which were transported by road in a truck upto Karachi Port with the goods which were stuffed in the Container and shipped to India.
- The impugned order was set aside and appeal allowed.
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