Denial of Customs Duty Exemption on ‘Boron Ore’ without analysing Test Reports: CESTAT Directs Re-adjudication [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication on the denial of customs duty exemption on boron ore without analyzing the test report. 

Shrusti Ceramics Private Ltd, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for denying the exemption eligibility on the import of ‘boron ore’. 

The issue involved in the case was that ‘Boron Ore’ was eligible for exemption under Sr.No. 130 of customs notification No. 15/2017-Customs Duty. 

Rahul Gajera, the counsel for the assessee contended that the exemption under the notification was provided to goods viz. ‘Boron Ore’ and the perusal of the finding of the adjudicating authority, the test report of the product shows that the goods were ‘Boron Ore’ and the assessee was eligible for the exemption. 

A R Kanai, the counsel for the department relied on the decisions made by the lower authorities and contended that the import of boron ore by the assessee was concentrated and not naturally mined. Thus the assessee was not eligible for the exemption. 

The Bench observed that the adjudicating authority had not properly considered various defense submissions made by the assessee and the judgments relied upon by the assessee and in the case of Kantilal Manilal & Co v CC, the court held that the naturally mined Boron Ore was eligible for exemption. 

The two-member bench comprising Ramesh Nair (Judicial) and Raju (Technical) remanded the matter back to the adjudicating authority for re-adjudicating the denial of exemption after analyzing the test reports. 

To Read the full text of the Order CLICK HERE

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