Authority: Calcutta High Court, Special Jurisdiction Original Side

Order Date: November 27, 2024

Case Overview

  • Parties: Commissioner of Customs (Port), Kolkata (Appellant) vs M/s Vedika Metals Pvt. Ltd. (Respondent).
  • The appeal challenges an order of the Customs Tribunal dated April 26, 2024, concerning export of ferro‑silicon.
  • A delay of 163 days in filing the cross‑objection was explained and consequently condoned by the Court.
  • The cross‑objection was admitted on nine substantial questions of law:

1. Whether ferro‑silicon, largely procured domestically and in small quantities imported from Bhutan, after re‑sizing, cleaning, grading and packaging, qualifies as goods of Indian origin without mis‑declaration.

2. Whether the Tribunal’s finding of mis‑declaration of country of origin at export is arbitrary, unreasonable and perverse.

3. Whether the Tribunal was justified in ordering confiscation under Section 113(i) of the Customs Act, 1962 when no mis‑declaration existed.

4. Whether, under Section 28(2) of the Customs Act, a show‑cause notice could be issued for duty, interest or penalty after the respondent had paid the DEPB amount with interest during investigation.

5. Whether the show‑cause notice dated April 1, 2014, concerning exports from 2008‑2012, is barred by limitation.

6. Whether the April 1, 2014 notice was issued without jurisdiction because it was not under Section 28AAA of the Customs Act.

7. Whether Section 114 of the Customs Act applies and the respondent is liable for any penalty therein.

8. Whether Section 114AA of the Customs Act applies and the respondent is liable for any penalty therein.

9. Whether the penalty imposed is disproportionate, expropriatory and unreasonable.

  • The stay application filed by the respondent was formally disposed of.
  • The Court dispensed with the filing of an informal paper book.
  • Since the respondent is represented by counsel, the notice of cross‑appeal on them was waived.
  • The cross‑appeal is to be listed together with CUSTA/26/2024 after a period of six weeks.

Final Outcome

  • The High Court condoned the filing delay, admitted the cross‑objection on the listed legal questions, disposed of the stay, waived procedural formalities, and ordered the cross‑appeal to be listed with the specified case number after six weeks.

Topics: Customs Law, Export Regulation