The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) quashed penalty and noted that the mis-declaration of country of origin in bills of entry is immaterial towards valuation.
The appeal was preferred against the order passed by the Commissioner (Appeals) wherein he upheld the classification of Rubber Processing Oil ( RPO ) under Chapter heading 27079900 of Custom Tariff Act and enhancement the value of imported RPO. The Commissioner (Appeals) further upheld that the appellant mis-declared the country of origin in the bills of entry.
As regard the issue of mis-declaration of Country of Origin, the counsel for the appellant submitted that both the lower authorities held that the appellants have mis-declared the country of origin in the bills of entry as UAE whereas the goods were originated from Iran and that the appellant had no deliberate intention not to declare the correct country of origin, the appellant declared country of origin based on documents received from the supplier. The counsel took support in case of BEL India trade Pvt. Ltd. vs. Commissioner of Customs.
The Assistant Commissioner ( AR ) appearing on behalf of the Revenue reiterated the finding of the impugned order.
A Two-Member Bench comprising Ramesh Nair, Judicial Member and CL Mahar, Technical Member observed that “As regard the issue of mis-declaration of Country of Origin in the bills of entry filed by the appellant, the material information declared in the bill of entry mainly corresponds to the goods that are under import and mis declaration of country of origin is immaterial towards the valuation, description and other such particulars concerning the goods, and the appellant would have gained nothing as no preferential rate of duty was claimed by the appellant.”
“We find that without prejudice, mis declaration of origin being an issue technical in nature does not seem to form any implication towards the revenue. Therefore, if there is a mis-declaration of country of origin the appellant being not the party to make any incorrect declaration cannot be held responsible and no consequential penalty can be imposed on the appellant” the Bench noted.
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