The Tribunal allowed the appeal, holding that since the Certificate of Origin was verified by Malaysian authorities via official process, the department could not shift the burden of proof to the appellant for cost data which is confidential. Consequential relief granted.
Appeal allowed with consequential relief to grant the benefit of exemption notification.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL WEST ZONAL BENCH AT AHMEDABAD
REGIONAL BENCH – COURT NO. 01
CUSTOM Appeal No. 10025 of 2022
[Arising Out Of OIA-MUN-CUSTM-000-APP-155-21-22 Dated-16/09/2021 Passed By Commissioner of CUSTOMS-MUNDRA]
KIARA INGREDIENTS INC …..Appellant
4th Floor L-352 L Block Mahipalpur Extension Mahipalpur New Delhi, New Delhi
VERSUS
C.C.-MUNDRA …..Respondent
Office of the Principal Commissionerate of Custom Port User Buld. Custom House Mundra, Mundra Kutch, Gujarat-370421
APPEARANCE :
Shri. Vikas Mehta, Consultant for the Appellant Shri. Sanjay Kumar, Superintendent (AR) for the Respondent
CORAM: HON'BLE MEMBER (TECHNICAL), MR. RAJU HON'BLE MEMBER (JUDICIAL), MR. SOMESH ARORA
FINAL ORDER NO. A / 10400 /2024
DATE OF HEARING:08.02.2024 DATE OF DECISION:14.02.2024
SOMESH ARORA
M/s Kaira Ingredients Inc., 4th floor, L-352, L-Block, Mahipalpur Extension, Mahipalpur, New Delhi-110 037 (hereinafter referred to as the appellant) had filed appeals against OIO No. MCH/ADC/AK/89/2019-20 dated 07.01.2020 issued by the Additional Commissioner of Customs, Mundra Customs House, Mundra (hereinafter referred to as the adjudicating authority). Same was decided by Commissioner (Appeals) vide order dated 16.09.2021. Aggrieved by this order, appellant has filed the present appeal.
2 | P a g e C / 1 0 0 2 5 / 2 0 2 2 - D B
3 | P a g e C / 1 0 0 2 5 / 2 0 2 2 - D B
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its contents. However, the department in the absence of cost data has placed the whole burden of proof on the appellants, despite documentary evidence coming to the fore by way of certificate of origin and same getting verified from Malaysian authorities. It is clear the cost data of Malaysian manufacturer having been provided or having been denied is a matter between Government to Government and cannot be held against the appellants, as no one will part its cost data to any buyer as same is generally considered confidential. In case the agreement between Malaysian Government and Indian Government had some provision for providing cost data of the supplier company then such condition could have been taken up with the Malaysian Government or action could have been taken under the preferential duty agreement by Indian Government. Failure of Indian authorities to get more detailed verification or underlying cost data from the Malaysian Government authorities cannot be held against the appellant, who discharged their burden to claim benefit by producing the relevant prescribed document under the agreement and the Customs notification. On production of such evidence, it was for the department to discharge the burden as shifted on it.
(Pronounced in the open Court on 14.02.2024)
(RAJU) MEMBER (TECHNICAL)
(SOMESH ARORA) MEMBER (JUDICIAL)
Prachi
3 issues framed by the court
Whether the burden of proof lies with the importer or the department when cost data is refused by foreign authorities citing data privacy.
Whether verification of certificate of origin by Malaysian Government through Government-to-Government process dispenses with the need for cost data.
Whether refusal to grant duty exemption due to lack of cost data is sustainable when third-party origin certificate is genuine.
Colour shows how this judgement treated each authority
Symphony International vs. C.C-MundraReferred¶4
SYMPHONY INTERNATIONAL vs. C.C-Mundra
5 provisions across 2 enactments
Kiara Ingredients Inc
C.C.-Mundra
RAJU
SOMESH ARORA
As recorded by the court registry
An appeal in a customs matter before the Customs, Excise and Service Tax Appellate Tribunal.
Judgements on the same questions, provisions and authorities, from every court
