2023 (7) TMI 722 - CESTAT, BANGALORE

Benefit of duty free import as raw materials as per Notification No.52/2003-Cus dated 31.03.2003 denied - misdeclaration of goods - Coffee Husk/Bits or Robusta Coffee Beans? - Classified under CTH 09019010 or not - typographical error or intentional misdeclaration? - HELD THAT:- While issuing general exemption on import of goods for EOU, it is specified that such EOU must follow procedure prescribed under Rule 5(1) (a) of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. In the present case as evident from the application for Procurement of Goods under the said Rule, the importer has provided information/ documents to Customs Export Promotion Cell and executed B-17 bond for import of Vietnam Robusta Coffee having CIF Value of Rs. 96,09,828/-. As per the invoice, description of the goods is shown as “Vietnam Robusta Coffee” and as per the description of the consignment mentioned in Certificate of Quality and Weight by the exporter/seller in Vietnam it shows “Vietnam Robusta Coffee” and Quality: Moisture-13%, Husks-50%, Broken Kernels -50%. On arrival of the goods, Bill of entry was filed by giving description of goods as “Vietnam Robusta Coffee”.

It is an admitted fact that the importer sought bulk import of Vietnam Robusta Coffee and entire documents including Bill of entry shows proper declaration. When permission was given for import of Vietnam Robusta Coffee, percentage of constituents like Beans, husk and skins were not mentioned. In the absence of any such condition, no allegation of mis-declaration can be alleged at the time of import.

The power vested in the Customs authority is to verify that the goods are as per the import documents and the relevant approvals and it is for the concerned authority under Special Economic Zone to consider the request of EOU to import raw material suitable for import and to ensure fulfillment of export obligations as per the norms issued from time to time. In the present situation, goods even if considered as consisting of coffee husk/bits as alleged, it is legally permitted to import subject to fulfillment of condition 2A under General Exemption No. 69, Notification No. 52 / 2003-Cus dated 31.03.2003.

The respondents are directed to release the goods by extending the benefit of Notification No. 52 /2003-Cus dated 31.03.2003 - appeal allowed.