An administrative letter denying a request for reassessment or waiver of interest, which lacks independent legal reasoning and does not constitute a formal adjudication, is not an appealable 'order' or 'decision' under Section 128 of the Customs Act.

SANJIV SRIVASTAVA:

This appeal is directed against Order-in-Appeal No.NOI CUSTM-000-APP-140-25-26 dated 26/09/2025 of the Commissioner (Appeals), CGST, Noida. By the impugned order Commissioner (Appeal) has rejected the appeal filed by appellant holding as follows:

ORDER

I dismiss the appeal bearing No. 24/CUS/NOIDA/APPL/NCUS/2025-26 dated 25.04.2025 filed by M/s RMG Polyvinyl India Ltd., H.O. UGSR-4. Ansal Plaza, Sector-1, Vaishali, Ghaziabad (U.P)-201010 against the letter dated 04.03.2025 passed by the Assistant Commissioner, ICD Loni, Customs Commissionerate, Noida (due to failure of the appellant to comply with the provisions of Section 128 (1) of the Customs Act, 1962.)

2.1 The appellant is engaged in the manufacture of PVC Floor covering, PVC sheeting and Artificial Leather cloth liable to respective rates under GST. They are supplying goods in the domestic and overseas market. The appellant is claiming ITC on the inputs/inputs services and capital goods, which is being utilized for payment of GST on their final products. The facts of the instant case pertain to the period prior and after introduction of GST on 01.07.2017.

2.2 Appellant filed Bill of Entry Nos. 5803558 dated 31.03.2018 & Bill of Entry No. 5913284 dated 09.04.2018 for clearance of the goods imported by them. They claimed the exemption benefits at the time of import under Notification No. 18/2015-Customs dated 01.04.2015, as amended by Notification No. 79/2017-Customs dated 13.10.2017, issued under Section 25(1) of the Customs Act, 1962. These notifications provide exemption from the levy of Basic Customs Duty (BCD), Countervailing Duty (CVD), Special Additional Duty (SAD), and subsequently, Integrated Goods and Services Tax (IGST) on goods imported against a valid Advance Authorization issued under Para 4.03 of the Foreign Trade Policy (2015-20).

2.3 The imported items in both the subject BOEs were imported under 5 Advanced Authorization licenses ((hereinafter referred to as the "AA"). The details of the Export Obligation Discharge Certificates ("EODCs") issued by the DGFT in respect of the said AAs are detailed in table below:

2.4 After implementation of GST, Notification No. 79/2017-Cus introduced IGST exemption, subject to fulfillment of additional conditions including the "pre-import" condition and physical export compliance as stipulated in DGFT Notification No. 33/2015-20 dated 13.10.2017, which amended Para 4.14 of the FTP. The office of Addl. DGFT (CLA) vide its letter dated 05.09.2024, conveyed to the Appellant that the Appellant had failed to fulfill the pre-import condition applicable to the import of goods under BoE No. 5913284 dated 09.04.2018. On such basis, the appellant was directed to deposit the Customs Duty and interest thereon accordingly. However, it was informed to the appellant that the case will be examined further only after the submission of TR6 regarding the payment of IGST and interest thereon.

2.5 The appellant in compliance with the directives of DGFT and to ensure that their objection and dispute regarding the wrongful and erroneous observation/verification by the Addl. DGFT(CLA) regarding non-fulfillment of the pre-import condition, vide letters dated 30.09.2024, stated that they had complied with all conditions, including the pre-import conditions, and imported goods vide both the BoEs under all 5 five valid Advance Authorizations, and the same is evident from the available EODCs in respect of the respective Advance Authorizations. They made a written request seeking reassessment of the BoE Nos. 5803558 dated 31.03.2018 & No. 5913284