Wrong Quoting of Notification Benefit in SCN is a Minor Error, Not fatal to Customs Demand Order: CESTAT refuses to Quash Order against Hyundai
The Observation was made by the CESTAT while hearing a plea by Hyundai to Quash the Order-in-Original passed by the Customs
The Customs, Excise & Service Tax Appellate Tribunal, Chennai ( CESTAT ) recently refused to quash a Demand Order against Hyundai wherein it was held that quoting the wrong Notification Benefit available to an Assessee is a minor error and not fatal to the intent of the Order-in-Original. The observation was made while Hyundai refused to quash a Customs Order against Hyundai. The...
The Customs, Excise & Service Tax Appellate Tribunal, Chennai ( CESTAT ) recently refused to quash a Demand Order against Hyundai wherein it was held that quoting the wrong Notification Benefit available to an Assessee is a minor error and not fatal to the intent of the Order-in-Original. The observation was made while Hyundai refused to quash a Customs Order against Hyundai.
The decision was rendered by CESTAT while hearing multiple Customs Appeals filed by Hyundai Motors India Ltd. (Hyundai), Kanchipuram, a prominent manufacturer of passenger motor cars against the Commissioner of Customs and vice versa. Hyundai imports various parts and accessories for use in their passenger motor cars and is involved in a number of taxation processes to facilitate their business.
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The Directorate of Revenue Intelligence (DRI), on the basis of intelligence received by them, alleged that Hyundai had misclassified various goods imported by them to illicitly avail Basic Customs Duty (BCD) exemption in light of exemption Notification No. 152/2009-Customs dated 31.12.2009. The Notification provides Exemption of Customs duty on certain goods when imported into India from the Republic of Korea.
The Appellant was served with Show-Cause Notice ( SCN ) demanding differential duty of Rs.59.53 Crores, which was confirmed by Order-in-Original passed by the Commissioner of Customs (Import), Chennai alleging mismatch.
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The Appellant, while contesting the credibility of the SCN alleged gross non-application of mind by the Customs Department as the impugned SCN purported that the Appellants had imported the disputed goods from Republic of Korea and wrongly availed Basic Customs Duty Exemption Benefit at Nil in terms of Notification No. 152/2009-Customs, while the PIO AVN Audio were in fact imported from Vietnam, availing exemption benefit of Nil Customs Duty in terms of Customs Notification No. 46/2011 dated 01.06.2011.
The two-member Bench of CESTAT, Chennai comprising P. Dinesha, Judicial Member and M. Ajit Kumar, Technical Member observed that misquoting the Notification Benefit to avail BCD Exemption in the Show-Cause Notice is merely a minor error and not fatal to the Order-In-Original, thereby rejecting Hyundai’s plea for quashing this specific part of the SCN.
To Read the full text of the Order CLICK HERE
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