By TIOL News Service

MUMBAI, JUNE 08, 2017: APPELLANT imported Pregnancy (HCQ) Test Strip and Pregnancy (HCQ) Test Cassette declaring that the goods are entitled to concessional rate of duty under Notification No. 21/2002-Cus.

Incidentally, the benefit was claimed without satisfying condition of the said notification and, therefore, in later proceedings the demand of customs duty was confirmed.

Before the CESTAT, the appellant submitted that Customs had examined the goods as well as the documents while clearing the same and, therefore, there should not be denial of exemption benefit.

The Bench inter alia placed reliance on a plethora of decisions of the apex court viz. Essar Oil Ltd. – 2004-TIOL-84-SC-CUS , S.P. Changalvaraya Naidu v. Jagannath [1994 (1) SCC 1], Ashok Leyland Ltd. v. State of T.N. and Another - 2004-TIOL-09-SC-CT , Gowrishankar v. Joshi Amha Shankar Family Trust , [1996 (3) SCC 310] and concluded that the appellant had committed an act of fraud on Revenue.

It was also observed -

"3. Appellant made Customs to believe that it is entitled to concessional rate of duty without having any evidence in that regard. Law is well settled that whoever makes the other to believe on the unbelievable, that is deception irrespective of the result of the belief. When the appellant claimed grant of exemption benefit in the Bill of Entry in terms of a notification without having any evidence to fulfill the conditions thereof, it should have restrained from making such claim.

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6. When no evidence was led by appellant to claim the exemption, that established deliberate mis-declaration to Customs. Customs proved its case against the appellant. Appellant made attempt to be enriched at the cost of Revenue making deliberate mis-declaration. That made the goods liable to confiscation being smuggled goods under section 2(39) read with section 2(33) of the Customs Act, 1962. Questionable conduct and oblique motive of the appellant contributed to its implication to the charge."

The appeal was dismissed.

(See 2017-TIOL-1921-CESTAT-MUM)