Custom
TRT-2025-
Cestat Mumbai
Date:-24-08-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 24 August 2022
Facts –
- The appellant, Shree Chamunda Enterprises, imported CRGO sheets/ coils.
- It appeared to the Department, that the appellant was importing “Secondary grade goods” and were declaring the same to the “Prime goods”.
- Appellant submitted that imported goods worth around 2 Cr are pending release for more than 3 years. They have deposited an amount of Rs 1.53 Cr already; the appellants are incurring huge losses in addition to demurrage charges.
- It was further submitted that the test reports obtained by DRI indicate that the goods are confirming to the requirement of BIS standards IS: 3024 and as such the Department has no reason to hold on to the goods.
- Revenue contended that not only the good be as per specifications of BIS, the manufacturer needs to have BIS license/ registration for manufacturing such goods.
- A Show Cause Notice dated 20.08.2019 was issued and same is pending adjudication, mean while the appellant has applied for provisional release of the seized goods which was rejected by the department and later rejected by the tribunal as well.
- Aggrieved the appellant filed an appeal.
Issue –
- Whether rejection of provisional release of the goods of the appellant is justifiable?
Order –
- The Tribunal observed that impugned goods are manufactured by the some other manufacturer and supplied by someone else. It is the goods that should be as per BIS specifications and the manufacturer should be licensed or registered by BIS (Bureau of Indian Standard). The rules do not specified that the supplier should be registered.
- Further, once the goods are BIS compliance; the manufacturer is registered/licensed by BIS and the goods have ISI markings, goods are free from taint as far as provisional release of the goods is concerned.
- As the goods are tested to be BIS compliant and the manufacturer of the goods is claimed to be registered with the BIS and the importer appellant has complied with the conditions of Imports.
- Therefore, Tribunal found that the department is not correct in rejecting the request for provisional release of the goods.
- Therefore, it was held that in the interest of justice would be met if the department issues a detention certificate, as applicable, for waiver of demurrage charges.
- Tribunal allowed provisional release of the goods subject to submit the Bond and bank guarantee.
- Therefore, the appeal was allowed.
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