ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 23.08.2025
CESTAT Hyderabad Upholds Validity of Malaysian Certificates of Originβ β β
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Hyderabad, recently delivered a significant judgment in a series of appeals concerning the import of cocoa powder under preferential trade agreements. This decision, pronounced on August 22, 2025, sheds light on the interpretation of Free Trade Agreements (FTAs), the validity of Certificates of Origin, and the application of extended limitation periods under customs law. Hereβs a detailed breakdown of the case and its implications.
Background of the Case
The appellantsβM/s Malta Exports, M/s Ravi Foods Pvt Ltd, M/s Pahal Foods Pvt Ltd, M/s Kamala Consumer Care Pvt Ltd, and M/s Dukes Consumer Care Ltdβimported cocoa powder from Malaysia, claiming concessional duty benefits under Notification No. β 46/2011-Cus and Notification No. β 53/2011-Cus. These benefits were based on Certificates of Origin issued by the Malaysian Ministry of International Trade and Industry (MITI), certifying that the Regional Value Content (RVC) of the cocoa powder exceeded 35% of the Free on Board (FOB) value. β
However, the customs authorities issued show cause notices (SCNs) alleging that the RVC requirement was not met, relying on a 2014 Board letter. β The authorities demanded differential duty, imposed penalties, and denied the exemption benefits. β Aggrieved by these orders, the appellants approached 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 Hyderabad
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