ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 09.06.2025
CESTAT Mumbai Quashes Customs Duty Demand on Gold Jewellery Imports Under IndiaβThailand FTA
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has set aside the denial of concessional customs duty benefits to importers of gold jewellery from Thailand under the IndiaβThailand Free Trade Agreement (FTA). The Tribunal held that customs authorities cannot unilaterally reject the Certificate of Origin (CoO) issued by the exporting country without following the designated verification mechanism under the FTA framework.
This landmark decision comes as a relief to several importers who were denied preferential duty benefits despite submitting valid CoOs issued by the Thai authorities.
Background of the Dispute
- Multiple importers imported gold jewellery from Thailand, availing concessional duty benefits under the IndiaβThailand Early Harvest Scheme of the FTA.
- The Customs Department rejected the declared origin, citing improper documentation and alleged non-fulfilment of origin criteria, and demanded differential duty along with interest and penalties.
- The Department proceeded without referring the matter to the Designated Authority in Thailand as per the dispute resolution procedure of the FTA.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Mumbai
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