Order Date – 12 April 2023

Parties: M/s Sushil Corrugating and Chemicals Pvt. Ltd. Vs Commissioner of Customs, Preventive Commissionerate, New Delhi

Facts –

• The Appellant, M/s Sushil Corrugating and Chemicals Pvt. Ltd., imported “modified Tapioca Starch”, Industrial Grade classifying it under Chapter Heading 35051090 and paid appropriate amount of duty.
• A show cause notice dated 26.02.2016 was issued alleging that the appellant had evaded customs duty and the imported goods were “Native Tapioca Starch, Industrial Grade” classifiable under Tariff Heading 1108.

Issue –

• Whether the appellant had evaded customs duty by mis declaring the imported goods?

Order –

• The Tribunal observed that the differential duty worked out in this case has the effect of changing both the classification and the valuation. However, there is no proposal whatsoever in the SCN to change the classification and the impugned order and the order-in-original also do not indicate any proposal to change the classification of the goods. Therefore, the change of classification cannot be sustained.
• After examining the statements and the evidence available on record, could not find any substantial evidence to reject the declared value. The only thing which goes in favour of Revenue is that the Managing Director of the appellant had given statements which, he retracted later. If the statements and the retraction are both considered, nothing survives in this demand. If neither is considered also, nothing survives.
• Hence the appeal is allowed.