2026-VIL-1586-CESTAT-CHE-CU
  1. Home
  2. 2026-VIL-1586-CESTAT-CHE-CU

CUSTOMS CESTAT Cases

Customs – Import of Newsprint under Foreign Trade Policy - Applicability of RNI registration requirement at time of import versus time of clearance - Appellant imported newsprint under Foreign Trade Policy 2009-2014 and 2015-2020, stored it in bonded warehouses and subsequently sold to RNI-registered actual users who filed bills of entry claiming exemption under Notification No. 12/2012-Cus., Sl. No. 264 - Whether prior to 03.06.2016, the appellant, not holding RNI registration certificate, could legally import newsprint under duty-free regime - HELD - Imports made prior to 03.06.2016 cannot be treated as violation of applicable Foreign Trade Policy. The DGFT Notification No. 09/2015-2020 dated 03.06.2016 expressly clarified that RNI registration requirement applies at time of import of goods, whereas prior policy required it at time of clearance. The amended requirement cannot be applied retrospectively to imports made before 03.06.2016. Additionally, Notification No. 12/2012-Cus., Sl. No. 264 did not itself prescribe any condition requiring the importer to be RNI-registered or Actual User. Therefore, exemption from basic customs duty and additional duty was not conditional upon such requirements. The import of newsprint under such exemption followed by sale to RNI-registered actual users could not constitute violation of import policy or Customs Act – Revenue appeals against Order-in-Appeal setting aside confiscation are rejected - Customs - Confiscation of newsprint - Burden of proof for establishing illicit import and diversion to dummy units - Newsprint seized at various premises, Appellant alleged to have imported improperly and cleared to dummy units for illicit consideration, charged under Sections 111(d), 111(o) and Section 112 of Customs Act, 1962 - Whether confiscation and penalty can be sustained based on procedural irregularities such as non-tallying of reel serial numbers without substantive evidence of illegal import or diversion - HELD - The initial burden of establishing that goods were illicitly imported lies with Department. Department must establish foundational facts from which it can be reasonably inferred that goods were illicitly or improperly imported and thereafter supplied to dummy units for illicit consideration. Only upon such foundational facts being established would evidentiary burden shift to person in possession. In present case, no evidence of blame-worthy conduct with intention to evade duty was discerned. Allegations that goods were cleared to dummy units against illicit consideration were neither charged nor proved. Procedural irregularities and serial number non-tallying do not constitute sufficient evidence of illegal import when every identified importer produced bills of entry, bills of lading, packing lists, invoices, transport documents and payment documents coupled with CA certificate. Confiscation and penalties are not sustainable - Appeals are rejected
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Critical issues: ITC on...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?