ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 25.07.2025
CESTAT Kolkata Upholds DGFT Clarification
In a landmark decision, the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Eastern Zonal Bench, Kolkata, has dismissed the appeal filed by the Revenue against M/s India Carbon Ltd, affirming their right to import Raw Petroleum Coke (RPC) for manufacturing Calcined Petroleum Coke (CPC). This judgment highlights the importance of regulatory clarity and adherence to policy guidelines in the import-export domain.
Background of the Case
M/s India Carbon Ltd, a leading calciner, specializes in manufacturing CPC by processing RPC. CPC is a critical component used in anode making for the aluminum industry. Until October 2019, the import of RPC with any sulphur content was unrestricted. However, following a Supreme Court order, the Central Government amended the import policy, imposing conditions on RPC imports. Licenses for RPC imports were issued by the Directorate General of Foreign Trade (DGFT) based on recommendations from an Expert Committee.
In 2021, M/s India Carbon Ltd was granted a license to import 37,777 M.T. of RPC for anode making in the aluminum industry. However, a portion of the imported RPC was seized by Customs Authorities, citing alleged violations of the import policy due to sulphur content exceeding 3.5%. This led to a series of legal proceedings, culminating in the present appeal before the Tribunal.
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 Kolkata
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