The CESTAT, Ahmedabad in Pradipkumar P Patel v. C.C. – Ahmedabad [Customs Appeal No. 10047 of 2022 in Final Order No. A/10118-10134/2023 dated January 25, 2023] has set aside the order passed by the Revenue Department denying the exemption from duty of Customs and Integrated Goods and Services Tax (“IGST”) on the import of concentrated ‘Boron Ore’ on the grounds that the same has been obtained after removal of impurities, whereas,only naturally mined products are eligible for such exemption. Held that, the Revenue Department had not properly considered the defence submission made by the assessee and the relevant test reports showing that the imported product is ‘Boron Ore’. Further held that, when the test reports were available on record, there was no need to go to the website and Wikipedia for the meaning of the product. Remanded the matter back for reconsideration in the light of the test reports.

Facts:

Pradipkumar P Patel (“the Appellant”) was in the business of importing Boron Ore and was availing exemption of duty of Customs and additional duty under Sl. No. 113 of Notification No. 12/2012-Customs dated March 17, 2012 for the period April, 2015 to June, 2017 and exemption of duty of Customs and IGST under Sl. No. 130 of Notification No. 50/2017-Customs dated June 30, 2017 for the period after June, 2017 (“the Impugned Notifications”).

However, the Revenue Department (“the Respondent”) denied the exemption to the Appellant and subsequently passed the Order-in-Original dated November 1, 2021 (“the Impugned Order”), on the ground that the Boron Ore imported by the Appellant is not naturally mined Boron Ore as the impurities have been removed from it, therefore, the same is concentrated Boron Ore, which is not eligible for exemption and only naturally mined Boron Ore is eligible for exemption.

Being aggrieved, this appeal has been filed.

The Appellant contended that the test report by two laboratories confirmed that the goods imported is Boron Ore and once it is decided that the goods is Boron Ore, exemption is permissible despite the fact that whether it is concentrated or otherwise.

Issue:

Whether the import of ‘Boron Ore’ by the Appellant is eligible for exemption under the Impugned Notifications?

Held:

The CESTAT, Ahmedabad in Customs Appeal No. 10047 of 2022 in Final Order No. A/10118-10134/2023 held as under:

• Observed that, exemption under the Impugned Notification is provided to goods viz. ‘Boron Ore’ and the test report also shows that the product is ‘Boron Ore’, however, the same is obtained after removal of impurities.
• Opined that, the Respondent has relied upon Wikipedia and Website for the meaning of ‘Ore’. Further stated that, when the test reports were available on record, there was no need to go to the website and Wikipedia for the meaning.
• Noted that, the Respondent had not properly considered various defence submission made by the Appellant and the judgments relied upon by the Appellant.
• Set aside the Impugned Order
• Remanded the matter back to the Respondent for reconsideration, in the light of the test reports and judgments relied upon by the Appellant.

Relevant Provisions:

Sl. No. 113 of Notification No. 12/2012-Customs dated March 17, 2012:

Sl. No. 130 of Notification No. 50/2017-Customs dated June 30, 2017 (effective till February 02, 2021):

(Author can be reached at [email protected])

DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.