Establishment of Identity and Genuine Export of CPC: CESTAT allows Free Import under FTP [Read Order]

The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) allowed free import under Foreign Trade Policy (FTP) on establishment of identity and genuine export of Calcined Petroleum Coke (CPC).

The issue involved in this appeal is whether the re-imported petroleum coke have been rightly confiscated alongwith imposition of penalty under Section 112(b) of the Customs Act.

The Appellant, Shri Balaji Ceramic Productsfiled a Bill of Entryfor clearance of purportedly re-imported goods (Calcined Petroleum Coke) which were claimed to have been exported on the grounds of rejection of the goods by the Buyer, and were accompanied with re-export invoice issued by M/s NAJD Steel.

The goods were absolutely confiscated being 19,506.20 kg of CPC valued at Rs. 6 crores. Further penalty of Rs. 6 lakhs was imposed under Section 112(b) of the Act. Being aggrieved the appellant preferred appeal before the Commissioner (Appeals) who was pleased to reject the appeal. Being aggrieved, the appellant exporter (re-importer) have filed present the appeal before the Tribunal.

The Commissioner (Appeals) have recorded the findings that the appellant had purchased the goods for export and on being rejected by the buyer in Saudi Arabia, the goods have been re-imported and admittedly, appellant have not availed any export benefit on the impugned goods.

The Bench of Anil Choudhary, Judicial Member observed that “Thus, I find that both the identity of the goods is also established and also that the appellant had genuinely exported the goods to the user buyer in Saudi Arabia. Further, on rejection by the buyer, the appellant was obligated to re-import the goods to mitigate his loss.”

“Admittedly, the export in this case was made through shipping bill which is before the date of restriction imposed vide Notifications. Thus, I hold that CPC was free for export-import on the day of export, the re-import by the appellant of the rejected goods, has to be treated as freely importable under the Foreign Trade Policy” the Tribunal noted.

To Read the full text of the Order CLICK HERE

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