2026-VIL-725-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs – Validity of Certificate of Origin, sample testing – Revenue of the view that the SAFTA Certificates of Origin provided by the Bangladesh exporters, and the Bangladesh Authorities certifying in the Certificate of Origin that the Rapeseed oil is wholly manufactured in Bangladesh cannot be taken as correct - Whether the Revenue can question the veracity of the COO issued by the Bangladesh authorities and use limited sample testing results to determine duty liability across all consignments – HELD - The Certificate of Origin, sent by Indian officials for verification to the Bangladesh Officials, have been certified by Bangladesh officials to be correct towards the contents therein. The DRI has no authority to question the COOs issued and duly affirmed by Bangladesh - Revenue cannot take the stand that since Erucic Acid content was not tested/verified, that by itself would prove their origin to be other than from Bangladesh, negating the assertion of the Bangladesh authorities – Further, in the present case all the imports were prior to the Section 28DA coming into force. Therefore, the appellants herein are not burdened with the additional requirement given so as to know the veracity of the overseas exporter as given in the Certificate of Origin - Revenue’s case doubting the veracity of the Certificate of Origin has no legs to stand on. Therefore, the impugned orders are set aside on this ground itself – The demand of duty, interest and penalties imposed are set aside and the appeals are allowed - Limited Sample testing, Extended period - The act of a few samples being tested for the second time, without giving any further opportunity to the appellants to get them re-tested is a case of gross error on the part of the Revenue. In many cases CRCL found the Erucic Acid value to be more than 2%. Therefore, the Revenue’s attempt to apply the lab result of the second sample taken for a few consignments to all the consignments, cannot be legally sustained - All documents for claiming the Duty exemption have been provided by the appellants at the time of imports. The goods were lab tested by CRCCL and the results were reflected in the website even before the Out of Charge was issued. No link of the appellants has been established by the Revenue with the purported non-fulfilment of SAFTA conditions in the COOs issued. Hence, the confirmed demand for the extended period stand set aside - In the absence of any evidence of collusion or fraud by the appellants, the demands confirmed for the extended period are set aside on grounds of time-bar as well - Duty re-assessment under Section 17(5) and appeal against self-assessment - Whether the Revenue was required to file an appeal against the self-assessed Bills of Entry before proceeding under Section 28 – HELD - The re-assessment under Section 17(5) and demand under Section 28 are distinct actions available to the Revenue. While the Supreme Court ruling in ITC Ltd. case requires the Revenue to file an appeal against self-assessment, in the present case, the Revenue's resort to Section 28 proceedings would not be vitiated since no case of suppression has been made out against the appellants. The Tribunal has not found any error in the Revenue's approach of proceeding under Section 28 in the present case.
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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