2026-VIL-1840-CESTAT-KOL-CU
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CUSTOMS CESTAT Cases

Customs - Invocation of extended period of limitation under Section 28(4) of Customs Act, 1962 for denial of preferential duty exemption on the ground of non-authentic Certificate of Origin - Appellant imported miscellaneous articles claiming exemption under the notification implementing the India-Malaysia Comprehensive Economic Cooperation Agreement, and the goods were examined, assessed after verification of the certificate and cleared - On an alert issued in 2021 regarding non-authentic certificates, the Department issued SCN invoking Section 28(4) alleging wilful suppression, and the demand, confiscation, redemption fine and penalty under Section 114A were confirmed and upheld by FAA - Appellant contended that there was no evidence of its knowledge of the alleged non-authenticity and that verification was not completed within six months as prescribed in Clause 9(4) of Annexure III of the Rules of Origin - Whether the extended period of limitation can be invoked - HELD - The goods were examined and cleared with the benefit of the notification, and the Rules of Origin require verification of the certificate within six months, which was not done. There was no allegation that Appellant was aware of the alleged nature of the certificate or had connived with the overseas supplier, and no evidence of collusion, wilful mis-statement or suppression. The goods were cleared in February 2018, the investigation began only in May 2021 and the SCN was issued in February 2023 - The SCN is highly time-barred and the extended period is not invocable - Rejection of Certificate of Origin issued by the competent authority of the exporting country and consequent denial of preferential exemption - Revenue discarded the certificate on goods consisting mainly of aluminium pipes and fittings relying on the alert and on emails from the issuing authority and the Board stating that no application was received from the supplier - Appellant contended that the emails and alert were not supplied to it or relied upon in the SCN, that the alert related to steel products, and that there was no finding that the certificate was forged - Whether the Certificate of Origin can be discarded - HELD - The alert related to other products and is not applicable to the goods imported. The emails relied on by the Adjudicating Authority were not the subject matter of the SCN and were not provided to Appellant for explanation, so an allegation based on them is not sustainable. The issuing authority has not disowned the issuance of the certificate in this case, and Revenue brought no evidence to that effect - The Certificate of Origin cannot be discarded, and the confirmation of demand of duty and penalty is not sustainable - Redemption fine under Section 125 of Customs Act, 1962 where imported goods are not available for confiscation - Goods were held liable to confiscation under Section 111(m) and 111(o) and redemption fine was imposed, while Appellant contended that the goods were cleared on payment of duty and sold in due course - Whether redemption fine is imposable when the goods are not available - HELD - It is admitted that the goods are not available, and in such circumstances redemption fine is not sustainable, as held by the Larger Bench of this Tribunal and affirmed by the High Court - The goods cannot be held liable to confiscation, no redemption fine is imposable, the impugned order is set aside and the appeal is allowed.
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