CESTAT set aside the order increasing value of imported goods due to classification dispute as drawback was available
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 7 December, 2021
Latest from Taxmann
Case Details: J.B. and Brothers Pvt. Ltd. Vs Commissioner of Customs, Mumbai - [2021] 133 taxmann.com 50 (Mumbai - CESTAT)
Judiciary and Counsel Details
-
- Ajay Sharma, Judicial Member and C.J. Mathew, Technical Member
- A.K. Prabhakar, Adv. for the Appellant.
- Manoj Kumar, Deputy Commissioner (AR) for the Respondent.
Facts of the Case
The appellant filed bill of entries before the custom authorities declaring that it has imported ‘rough diamonds’ classifiable under Tariff heading 7102 3100 (Unworked or simply sawn, cleaved or bruted) attracting ‘Nil’ rate of duty. The appellant exported the stones after final cutting and polishing of said diamonds, thereby being eligible to the drawback of any duty paid on import.
The authorities re-classified the imported goods as ‘cut and polished diamonds’ under Tariff heading 7102 3910 (Diamond, cut or otherwise worked but not mounted or set) that attracts duty of 2%. Further, the authorities has also increased the value as per Rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
In respect of classification, few reports by Gemological Institute of India (GII) and GIA India Pvt Ltd. (based on the samples collected) were submitted that the impugned goods cannot be classified as Rough Diamonds.
CESTAT Held
The CESTAT noted that the impugned goods may not be ‘rough diamonds’ and may have undergone working before import. However, the reports do not conclusively establish that these were ‘cut and polished diamonds’.
Based on the above, the CESTAT set aside the order of Commissioner of Customs due to lack of the evidence to classify it as rough diamonds. It was also held that since the exports of goods were ultimately eligible for drawback, it cannot be held that the appellant intend to evade duty of only differential amount by declaring wrong details in bill of entry.
List of Cases Referred to
-
- Surbhit Impex (P.) Ltd. v. Commissioner of Customs (EP) 2012 (283) E.L.T. 556 (Trib. – Mum.) (para 3)
- Bata India Ltd. v. Commissioner of Customs 2008 taxmann.com 952 (Chennai – CESTAT) (para 3)
- Commissioner of Customs v. Mahalaxmi Gems 2008 (231) E.L.T. 198 (SC) (para 3).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
