IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH: KOLKATA REGIONAL BENCH – COURT NO. 1 (Arising out of Order-in-Original No. Kol/Cus/Commissioner/Port/09/2019 dated 28.02.2019 passed by the Commissioner of Customs(Port) Custom House, 15/1, Strand Road, Kolkata 700 001)

M/s. Nirmal Wires Pvt. Ltd. : Appellant E.M. Bypass, Kolkata-700039, West Bengal VERSUS Commissioner of Customs (Port), Kolkata : Respondent Custom House, 15/1, Strand Road, Kolkata 700 001 APPEARANCE:

Shri Biswajit Mukherjee & Shovendu Banerjee, Advocates for the Appellant Shri Subrata Debnath, Authorized Representative for the Respondent CORAM:

HON’BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO.76863/2025 DATE OF HEARING / DECISION: 02.07.2025 Order: [PER SHRI K. ANPAZHAKAN]

The instant appeal has been filed by M/s Nirmal Wires Pvt Ltd, Rudra Mani, 1720 Laskarhar, 15th & 16th Floor, Kolkata-700039 having IEC No.0294000321 (hereinafter referred to as the Appellant) against the Order in original being No. KOL/CUS/COMMISSIONER/PORT/09/2019 passed by the Commissioner of Customs (Port), whereby the adjudicating authority has confirmed a demand of Rs. 3,87,82,349/- and also imposed a redemption fine of Rs. 1,00,000,00 and a penalty of Rs.

30,00,000 under Section 112(a)(ii) of the Customs Act, 1962 upon the appellant.

2. The appellant in the instant case has imported goods namely "Hot Rolled Alloy Steel Wire Rods in Coils", falling under Customs Tariff Item No 72279090 and “High Grade Zinc Ingot” falling under CTH 79011100 from China, vide 10 Nos. of Bills of Entry and under cover of 11 (eleven) Advance Authorizations issued by DGFT, Kolkata. The appellant availed the benefit of exemption Notification No. 18/2015-Cus dated 01-04-2015, as amended. Such goods are exempted on condition that the same would be used in the manufacture of export goods only.

2.1. The appellant claimed that they have fulfilled their export obligation in respect of all of the cases of advance authorization by manufacturing and exporting finished goods as permissible by the Policy. The DGFT being satisfied also issued Export Obligation Discharge Certificate (EODC) in respect of the 8 (Eight) Licenses. It is pertinent to mention herein that the said EODC has not been cancelled by the DGFT authorities.

2.2. A Show Cause Cum Demand Notice bearing F. No. DRI/KZU/CF/ENQ-77/(INT-05)/ 2017/2722-2724 Dated: 15/05/2018 read with the Addendum to the Show Cause Notice bearing F. No. DRI/KZU/CF/ENQ- 77(INT-05)/2017/3248 Dated: 08/06/2018 was issued by the ADG, DRI, inter alia, alleging, amongst others, that from the wordings of the Policy it is clear that the benefit of such free import has been extended on specific condition that materials so imported before fulfillment of export obligation have to be used in the manufacture of export products only, after allowing normal wastage. In case of such pre-export importation under Advance Authorizations, physical incorporation of such materials in the export goods have also been made mandatory by the said provision of Para 4.03 of the policy. While Para 4.16 further demands that even if the export obligations have been fulfilled, such goods have to be used for the purpose of manufacture of dutiable goods only and the same cannot be transferred or sold. Accordingly, the notice demanded duty for such duty free imports along with redemption fine and penalty and interest.

2.3. The Notice alleged that the appellant has incorrectly availed the benefit of exemption under Notification No. 18/2015-Cus dated 01-04-2015. It was also alleged that the appellant has exported goods which were manufactured out of domestically procured Non-Alloy Steel Wire Rods and Zinc Ingots, even before the Imports were commenced. It was further alleged that the goods which were exported, were classified under Heading No. 7217 of the Customs Tariff, as the said goods were Non-Alloy Steel in nature. It was also alleged