ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 29.04.2025
CESTAT Kolkata Rules in Favor of La Opala RG Ltd. on SHIS Duty Benefit Dispute
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Kolkata, ruled in favor of M/s. La Opala RG Ltd., quashing a duty demand of nearly Rs. 58 lakh raised by Customs for imports made under the Status Holder Incentive Scrip (SHIS) scheme.
Background:
M/s. La Opala RG Ltd., a prominent glassware manufacturer, imported key manufacturing inputs such as Crucible Pots, Pot Rings, Abrasive Belts, PVA Wheels, Bevelling Cones, and Refractories between December 2012 and February 2015. These imports were made under 12 SHIS scrips via 14 Bills of Entry.
Subsequently, the Directorate of Revenue Intelligence (DRI) issued a Show Cause Notice alleging that:
- The imported items were not capital goods or directly related to previously imported capital goods.
- SHIS scrips were misused to debit duty beyond the permissible 10% of the total scrip value.
The adjudicating authority confirmed a customs duty demand of Rs. 57,94,958 with interest and equal penalty under Section 114A of the Customs Act, 1962.
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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