CESTAT upholds concessional BCD rate of 5% on imported waste paper despite use thereof in the manufacture of paper other than newsprint, in terms of Notification No. 21/2002-Cus. as amended by Notification No. 66/2004-Cus.; Notes that assessee failed to fulfill conditions laid down under Notification No. 21/2002-Cus in as much as imported waste paper was not fully utilized in manufacture of ‘newsprint’:
Accepts assessee’s plea that effective BCD rate attributable to waste paper irrespective of its use in manufacture of newsprint or otherwise was only 5% in terms of Sl. No. 152 of said Notification and the only difference was in rate of CVD payable which was exempt only if waste paper was used in ‘newsprint’ manufacture: Finds no case of fraud, suppression of facts or falsification of record absent any deliberate violation of exemption Notification conditions, while stating that diversion of mere 10% of imported wasted paper is only incidental and does not call for any adverse inference on assessee’s part; Consequently, sets aside penalty imposed on assessee, however, upholds penalty imposed on Director stating that he should have been more vigilant and informed Revenue suo-moto about mis-utilization of imported waste paper.
Citation: [TS-104-CESTAT-2018-CUST]