Mis-Declaration Of Country Of Origin In Bills Of Entry Is Immaterial Towards The Valuation: CESTAT

The Ahmedabad Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that mis declaration of origin being an issue technical in nature does not seem to form any implication towards the revenue.

The bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) has observed that mis-declaration of origin being an issue technical in nature does not seem to have any implication for revenue. Therefore, if there is a misdeclaration of country of origin, the appellant, being not the party to make any incorrect declaration, cannot be held responsible, and no consequential penalty can be imposed on the appellant.

The appellant/assessee has challenged the order passed by the Commissioner (Appeals), in which he upheld the classification of rubber processing oil (RPO) under Chapter 27079900 of the Customs Tariff Act and enhanced the value of imported RPO. The Commissioner (Appeals) upheld that the appellant misdeclared the country of origin in the bills of entry. The Commissioner (Appeals) upheld the finding of the adjudicating authority and dismissed the appeal preferred by the appellant.

The appellant contended that both the lower authorities held that the appellants had mis-declared the country of origin in the bills of entry as the UAE, whereas the goods originated from Iran. The appellant had no deliberate intention not to declare the correct country of origin; the appellant declared the country of origin based on documents received from the supplier. There is no undue benefit to declaring another country of origin.

The tribunal held that for incorrect mention of country of origin, the importer cannot be penalised.

Counsel For Appellant: Salil Arora

Counsel For Respondent: Ashok Thanvi

Case Title: Aspam Petronergy Pvt. Ltd. Versus C.C.-Kandla

Case No.: Custom Appeal No. 10967 Of 2018 -DB

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