𝐒 𝐉 𝐄𝐗𝐈𝐌 𝐒𝐞𝐫𝐯𝐢𝐜𝐞𝐬

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 31.01.2025

CESTAT Bangalore said that the country of origin certificate met legal requirements, thus making the denial of the concessional rate as ‘invalid’

The CESTAT Bangalore ruled in favor of M/s. Malankara Wood Industries, granting concessional duty benefits on imported Pyinkado Timber from Myanmar. The tribunal held that the country of origin certificate was valid, and the Commissioner (Appeals) wrongly introduced new grounds, making the rejection legally invalid. The appeal was allowed with relief as per law.

Key Highlights of the Proceedings:

1. Case Overview:
   • Appellant: M/s. Malankara Wood Industries
   • Respondent: Commissioner of Customs, Cochin
   • Issue: Denial of concessional duty benefit under Notification No. 46/2011-Cus. for imported Pyinkado Timber from Myanmar.
2. Reason for Duty Concession Denial:
   • Customs authorities rejected the claim, arguing that the country of origin certificate was issued by the Myanmar Chamber of Commerce and Industries, not the designated authority per the notification.
3. Appellant’s Argument:
   • The correct certificate was issued by The Republic of the Union of Myanmar, Director of Trade, Ministry of Commerce, Yangon—the appropriate authority.
   • The Commissioner (Appeals) exceeded jurisdiction by introducing new issues not raised in the original order.
4. Tribunal’s Findings:
   • The country of origin certificate met legal requirements, making the denial of the concessional rate invalid.
   • The Commissioner (Appeals) wrongly added new grounds, which was against the principles established by the Hon’ble Supreme Court in Warner Hindustan Ltd. vs. CCE, Hyderabad (1999).
5. Final Ruling:
   • Appeal allowed, and impugned order set aside.
   • The appellant was granted consequential relief as per law.

Key Takeaway: The ruling reaffirms that new arguments cannot be introduced at the appellate stage if they were not part of the original adjudication, ensuring fair procedural conduct in customs disputes.

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Source: CESTAT Bangalore

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