CESTAT quashes rejection of the benefit of Preferential Trade Agreement on Steaming Non-Coking Coal Import on ground of Customs Duty Benefit Eligibility [Read Order]

The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the benefit of a preferential trade agreement on steaming non-coking coal import on the grounds of Customs duty benefit eligibility. 

TCP Limited, the appellant assessee was importing Steaming Non-Coking Coal and filed two Bills of Entry for clearance of the same, and the imported goods were supplied by Coal and Oil Company LLC, Dubai. 

The assessee appealed against the order passed by the Commissioner (Appeals) for rejection of the concessional rate of duty as per the Preferential Trade Agreement. 

Shobana Krishnan, the counsel for the assessee contended that the Preferential Trade Agreement allows the supply to be made by a third party country and it was only necessary that the goods should originate from Indonesia. In the present case, the Country of Origin Certificate establishes that the goods are of Indonesian origin. 

R. Rajaraman, the counsel for the department relied on the decisions made by the lower authorities and contended that the assessee was not liable for the benefit. 

The Bench observed that the impugned order rejecting the benefit of the concessional rate of duty as per the Preferential Trade Agreement is not justified. 

The two-member bench comprising Sulekha Beevi (Judicial) and Vasa Seshagiri Rao (Technical) allowed the Customs duty benefit while allowing the appeal filed by the assessee. 

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates