IN THE HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (CUSTOMS)

ORIGINAL SIDE Present:-

THE HON’BLE CHIEF JUSTICE T.S. SIVAGNANAM AND HON’BLE JUSTICE CHAITALI CHATTERJEE DAS CUSTA 15 OF 2025 GA/2/2025 COMMISSIONER OF CUSTOMS PORT KOLKATA VS.

M/S EMAMI AGROTECH LTD For the Appellant : Ms. Manasi Mukherjee, Adv. and Sr. Std. Counsel Mr. Bijitish Mukherjee, Adv.

For the Respondent : Mr. Abhratosh Majumder, Sr. Adv.

Mr. Rahul Dhanuka, Adv.

Mr. Niraj Baheti, Adv.

Last Heard on : 23.06.2025 Judgement on : 31.07.2025 CHAITALI CHATTERJEE DAS, J:-

1. This appeal has been filed by the Commissioner of Customs (Port) against the final Order no. 76173 of 2024 dated 26.06.2024 passed by the Customs, Excise and Service Tax Appellate Tribunal , Eastern zonal bench, Kolkata under Section 130 of the Customs Act, 1962 (the Act) against Customs Appeal No.75759 of 2023 arising out of Order-in-Appeal No. KOL/CUS/port/ks/572/2023 dated 28.0 7.2023 passed by the Commissioner (Appeals) of customs, Kolkata.

Heard the submissions of both the Learned Counsels.

The fact of the case is as follows:-

2. On September 6, 2021, and September 20, 2020 M/S Emami Agrotech Limited, filed 7 Into Bond Bills of Entry for warehousing in respect of imported goods, namely crude palm of edible grade. On September 21, 2021 and September 28, 2021, the importers filed Ex- Bond Bills of Entry for home consumption against above mentioned Into Bond Bills of Entry. The customs duty involved in the Ex-Bond Bills of Entry was of ₹47.82 crores. On October 8, 2021, the importer filed an application for withdrawal/cancellation of the said Ex- Bond Bills of Entry filed on September 21, 2021 and September 28, 2021 and reinstatement of Into Bond Bill of Entry.

3. On October 13,, 2021, by way of notification number 48/2021 – CUS and notification number 49/2021 – CUS, rate of basic custom duty(BCD) was reduced from 2.5% to Nil and rate of agriculture infrastructure development CESS (AIDC) was reduced from 20% to 7.5% with effect from October 14, 2021. The importer made a request on October 8, 2021, which was rejected on October 27 2021 by the Assistant Commissioner of Customs, (Apprising Group-1) on the ground that the application dated October 8, 2021 was inadequate. The importer that is M/S Emami Agro Tech Limited, submitted his explanation and provided chartered accountant certificate, and details regarding the depressed production and sales during the festival period. Once again, such request was rejected on December 4, 2021 with on the ground that the cancellation of Ex- Bond Bills Entries would result in substantial revenue loss to the department.

4. The said rejection order dated October 27, 2021 and December 4, 2021, were challenged by the importer before the High Court at Calcutta by filing writ petition and vide order dated January 11, 2022 the High Court set aside the said orders and directed to release the goods on payment of 50% of duty in cash and balance 50% by way of bank guarantee, subject to the satisfaction of the adjudicating authority.

5. In view of the order of the High Court, the importer approached the concerned apprising group with a demand draft for a sum of ₹23.91 crores and bank guarantee of an equivalent amount along with applicable interest of ₹52.38 lakhs for a period up to January 17, 2022, in compliance to section 61(2) of the Customs Act.

6. The prayer, of the importer for cancellation of Ex- Bond Bills of Entry was further denied vide order dated January 21, 2022 holding that it would entail a revenue loss of ₹22.25Crores , if a fresh bill of entry for home consumption is filed on January 17, 2022 for clearance of the said warehouse goods. This order was challenged before the High Court and was subsequently disposed of on the ground of having an alternate appellate remedy. Meantime, a further notification number 16/2022 – CUS dated 12.2.22 came into effect and further reduced the rate of AIDC from 7.5% to 5%. Vide an order dated March 1, 2022, the Hon’ble Division bench