CESTAT Kolkata Upholds Validity of Certificates of Origin

Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation

Date: 14.05.2026

CESTAT Kolkata Upholds Validity of Certificates of Origin

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Eastern Zonal Bench, Kolkata, recently delivered a significant order in a series of appeals involving Anil Industries and other respondents. The core issue revolved around customs duty assessments and the validity of Certificates of Origin for imported goods.

Background of the Case

The appeals arose from an Order-in-Original issued by the Commissioner of Customs (Preventive), Kolkata. The Revenue (appellant) challenged the dropping of proceedings by the Adjudicating Authority, arguing that the Certificates of Origin submitted by the respondents were not proper and should not be relied upon.

Key Legal Issues

1. Cross-Examination of Witnesses
   • The Adjudicating Authority noted that key witnesses, Shri Narendra Lodaya and Shri Dhaval Lapasiya, did not attend personal hearings or offer themselves for cross-examination, despite efforts by the investigating agency.
   • The absence of cross-examination led to the presumption that the evidence provided by these witnesses could not be relied upon, as per legal principles and the directions of the Hon’ble High Court.
2. Validity of Certificates of Origin
   • The Revenue’s case was based on the allegation that the Certificates of Origin were improper.
   • However, it was admitted that these certificates, issued by the overseas country, remained valid and had not been cancelled by the issuing authorities.
   • The Tribunal emphasized that unless the certificates are proven to be fake or fabricated, or cancelled by the issuing country, they must be accepted as valid documents.

Tribunal’s Findings and Precedents

• The Tribunal referred to previous cases, including CC (Prev), Kolkata Vs Shri Krishan Goswami and Commissioner of Customs (Preventive), West Bengal, Kolkata vrs. RTC Overseas Pvt. Ltd., where similar issues were adjudicated.
• In these cases, the Tribunal upheld the validity of Certificates of Origin when they were not disputed or cancelled by the issuing authorities.
• The Tribunal also highlighted the importance of allowing cross-examination of witnesses, as mandated by the High Court. If witnesses are not produced for cross-examination, their statements cannot be relied upon.

Final Order and Implications

• The Tribunal dismissed the appeals filed by the Revenue, affirming the Adjudicating Authority’s decision to drop the proceedings.
• The order reinforces the principle that valid Certificates of Origin must be accepted unless proven otherwise, and that procedural fairness, including the right to cross-examination, is essential in customs adjudication.

Conclusion

This case sets a clear precedent for customs proceedings involving Certificates of Origin and witness statements. It underscores the necessity for authorities to follow due process and respect the rights of parties to cross-examine witnesses. The Tribunal’s decision provides clarity and guidance for similar cases in the future, ensuring that valid documents and procedural fairness remain central to customs adjudication.

Source: CESTAT Kolkata

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