Custom, Excise & Service Tax Tribunal
Jangipur Bengal Mega Food Park Limited vs -Kolkata(Port) on 9 July, 2025
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
EASTERN ZONAL BENCH : KOLKATA
REGIONAL BENCH - COURT NO. 1
Customs Appeal No. 75865 of 2023
(Arising out of Order-in-Appeal No. Kol/Cus(Port)/Akr/205/2021 dated 26.02.2021
passed by the Commissioner of Customs(Appeals) 3rd Floor, Custom House, 15/1,
Strand Road, Kolkata-700001)
M/s. Jangipur Bengal Mega Food Park Ltd, : Appellant
Vill Gankar, Raghunathganj,
Murshidabad, Pin-742227
VERSUS
Commissioner of Customs (Appeals), : Respondent
Custom House, Kolkata APPEARANCE:
Shri S. C. Ratho, Consultant for the Appellant Shri T. Sulaiman, Authorized Representative for the Respondent CORAM:
HON'BLE SHRI ASHOK JINDAL, MEMBER (JUDICIAL) HON'BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL) FINAL ORDER NO.77016/2025 DATE OF HEARING / DECISION: 09.07.2025 Order: [PER SHRI K. ANPAZHAKAN] The present appeal has been filed against the Order-in-Appeal No: KOL/CUS(PORT)/AKR/205/2021 dated 26.02.2021 passed by the Commissioner of Customs (Appeals), Custom House, Kolkata, wherein the Ld. Commissioner (Appeals) has rejected the appeal filed by M/s. Jangipur Bengal Mega Food Park Ltd (herein after referred as the appellant), and upheld the order of the lower authority.
2. Brief facts of the case are that, the appellant was a Special Purpose Vehicle (SPV) formed under the initiation of West Bengal State Food Processing & Page 2 of 8 Appeal No.: C/75865/2023-DB Horticulture Development Corporation Limited (WBSFP&HDCL) in the name of "JANGIPUR BENGAL MEGA FOOD PARK LTD". Government of India, through IFCI Limited, a Government of India undertaking, joined the SPV as promoter Member. The main objectives of this project was for direct procurement of Fruits & Vegetables from Farmers, through Collection Centers (HAT), cleaning, sorting, grading and storing them at Cold Stores to be operated by the MEGA FOOD PARK authority and supplying to Food Processing Industries as raw materials besides Reducing wastage of the Agricultural produce of the vicinity.
2.1. As per Project Import Regulation, the sponsoring authority vide recommendation Ref F. No. 7(1) 2014-PI dated: 26.03.2014 duly signed by Deputy Industrial Adviser, GOI, Ministry of Food and Processing Industry, recommended for concessional rate of Customs duty in terms of Project Import and Customs Notification No. 21/2002-Cus dated:
01.03.2002 for importation of Capital goods for setting up of Cold Storage facility at Jangipur Bengal Mega Food Park Ltd, which was registered in compliance to Regulation 4 & 5 of Project Import Regulation, 1986. The appellant has been registered with the Customs assessing group for project import.
The appellant has also registered with the appropriate customs authority, the purchase order ref no. K159/5 dated: 18.10.2013 placed on M/s. Omnivent Technick BV, Netherland, for supply of "Equipment for Ventilation system" under heading 9801 of the Customs Tariff read with Notification No. 21/2002-Cus dated: 01.03.2002 for initial setting of a new unit for cold storage facility at Murshidabad, West Bengal. The Notification No. 21/2002-Cus was Page 3 of 8 Appeal No.: C/75865/2023-DB superseded by Notification No. 12/2012-Cus dated:
17.03.2012.
2.2. The appellant imported the items listed in the essential certificate vide Bill of entry no. 6429256 dated: 13.08.2014, availing concessional rate of customs duty under Project Import Regulation on payment of BCD @ 5% and without payment of any Counter Veiling Duty (CVD). The goods were allowed clearance provisionally against provisional assessment bond under heading 9801 of Customs Tariff read in conjunction with serial no. 515 of Notification No. 12/2012-Cus dated: 17.03.2012 and NIL CVD under serial no. 232 of Notification No. 12/2012-CE dated: 17.03.2012 on payment of total duty of Rs. 17,88,362/-.
2.3. During the course of Central Revenue Audit, it was alleged that the appellant was not eligible for the benefit of exemption granted earlier vide serial no. 515 of Notification No. 12/2012-Cus dated:
17.03.2012 and NIL CVD under serial no. 232 of Notification No. 12/2012-CE dated: 17.03.2012 on the ground that, the imported items being "Equipment for ventilation system" are not covered under serial no. 515 since the heading only covers "goods required for installation of mechanized handling systems and palette racking systems in mandis and warehouses for food grains, sugar and horticulture produces".
2.4. Accordingly, a show cause notice was issued demanding customs duty of Rs. 32,63,292/- by denying the benefit of exemption granted earlier.
The Notice also alleged that there was a delay in setting up of the project. On adjudication, the Ld. Adjudicating authority passed the Order-In-Original Page 4 of 8 Appeal No.: C/75865/2023-DB No. KOL/CUS/PORT/ADC/29/2019 dated:
13.03.2019, holding that the item imported are not covered in the list-7 appended to the Notification No. 12/2012-CE dated: 17.03.2012. On appeal, the Ld. Commissioner (Appeals) vide his Order-In-Appeal No. KOL/CUS(Port)/AKR/205/2021 dated:
26.02.2021, upheld the findings of the lower authority and rejected the appeal filed by the appellant. Hence, the present appeal.
3. The appellant submitted that they have claimed the exemption for the goods imported on the strength of the recommendation of the sponsoring authority under Project Import vide serial no. 515 of Notification No. 12/2012-Cus dated: 17.03.2012, which grants exemption of Basic Customs Duty @ 5% and NIL CVD under the same exemption Notification. Serial 515 of the Customs Notification provides "goods required for installation of mechanized handling systems and palette racking systems in mandis and warehouses for food grains, sugar and horticulture produces".
3.1. The appellant submits that the Ld. Assessing authority has denied the benefit for the goods imported under serial no.515 of Notification No. 12/2012-Cus dated: 17.03.2012. He has also considered exemption under serial no. 510 of the exemption Notification No. 12/2012-Cus dated:
17.03.2012. The delay in setting up of the project was also duly condone by him in the order-in-
original. Since serial no. 515 of the Notification only exempts Basic Customs duty @5% and does not exempts CV duty, in the order the Ld. Assessing authority has examined the exemption of CV duty under serial no. 232 of the Notification No. 12/2012- Page 5 of 8 Appeal No.: C/75865/2023-DB CE dated: 17.03.2012. But finally, denied the CV duty exemption on the ground that, the item imported are not covered under List-7 appended to the said Notification. Accordingly, he held that CV duty is leviable and to that extent he affirmed the demand of differential duty of Rs. 21,49,934/-. The Ld. Commissioner (Appeals) upheld the order of the Assessing authority.
3.2. The appellant submitted that List 7 of Notification No. 12/2012-CE dated: 17.03.2012 covers all 'equipment for ventilation system' used in the cold storage of horticulture goods vide serial no. 10, 15 & 21.
serial No. (10) Air Cooling Unit/Air Handling Unit all types, Serial No. (15) Cooling Tower and Serial No. (21) Refrigeration equipment (including compressor, condensing unit and evaporator) 3.3. The appellant submits that the items imported and installed were duly certified by the Chartered Engineer. Accordingly, the appellant submits that the initial assessment claiming exemption under serial no. 515 of the Notification No. 12/2012-Cus exempting Basic Duty @ 5% and NIL CV duty was in order. However, subsequently the Adjudicating authority re-considered the grant of exemption vide serial no. 510 of the exemption Notification No. 12/2012-Cus. But , finally denied the exemption of CV duty vide serial no 232 of the Notification No. 12/2012-CE holding that, the goods does not fall under List-7. The appellant submits that the findings of the adjudicating authority is erroneous and the Page 6 of 8 Appeal No.: C/75865/2023-DB goods imported by them are entitled to exemption of CV duty.
3.4. The appellant submits that alternatively, since Notification vide serial no. 510 exempts 'All goods' classifiable under 9801, the CV duty is also exempted vide serial no. 345 of the exemption Notification No. 12/2012-CE dated: 17.03.2012. The goods imported are classifiable under the CTH 8414 or 8418, hence the CV duty exemption granted to 'All Goods' of Chapter 84 excepts 8424,8432, 8433, 8436, 8437, 8452, 8469, 8479 also exempts the present goods imported, which are classifiable under the CTH 8414/8418. In view of the above submissions, the appellant claimed that the goods imported are entitled to exemption of duty in excess of 5% as assessed vide Notification No. 12/2012-Cus vide serial no. 515. Alternatively, goods are entitled to exemption in excess of 5% Basic duty in terms of Notification No. 12/2012-Cus vide serial 510 and exemption of CV duty vide serial 232 (List-7) of Notification No. 12/2012-CE dated: 17.03.2012. As such, if the benefit of CV duty is denied vide serial no. 232 of the Notification No. 12/2012-CE, then the goods are entitled for exemption vide serial no. 345 of the same Notification.
3.5. Accordingly, the appellant prayed for setting aside the demands of customs duty confirmed in the impugned order and allow their appeal.
4. The Ld. A.R. reiterated the findings in the impugned order.
5. Heard both sides and perused the appeal documents.
Page 7 of 8Appeal No.: C/75865/2023-DB
6. We observe that the appellant has imported the goods namely, "Equipment for ventilation system" and claimed exemption from CVD as provided vide serial no. 515 of Notification No. 12/2012-Cus dated: 17.03.2012 and under serial no. 232 of Notification No. 12/2012-CE dated:
17.03.2012. The assessing officer initially allowed the exemption. Later, in view of audit objection, show cause notice was issued proposing to deny the exemption on the ground that the said goods are not covered under serial no. 515. 6.1. We have perused the entry 515 Notification No. 12/2012-Cus dated:
17.03.2012, which reads as under:-
"goods required for installation of mechanized handling systems and palette racking systems in mandis and warehouses for food grains, sugar and horticulture produces".
6.2. We observe that the Ld. Adjudicating authority examined whether the goods are entitled to exemption in excess of 5% Basic duty in terms of Notification No. 12/2012-Cus vide serial 510 and exemption of CV duty vide serial 232 (List-7) of Notification No. 12/2012-CE dated: 17.03.2012. Finally, he denied the CV duty exemption on the ground that, the item imported are not covered under List-7 appended to the Notification. We find that that there are three entries in the List 7 of Notification No. 12/2012-CE dated: 17.03.2012, which covers all 'equipment for ventilation system'. They are reproduced below:
serial No. (10) Air Cooling Unit/Air Handling Unit all types, Serial No. (15) Cooling Tower and Page 8 of 8 Appeal No.: C/75865/2023-DB Serial No. (21) Refrigeration equipment (including compressor, condensing unit and evaporator) 6.3. We find that Sl. no. 10. Air Cooling Unit/ Air Handling System specifically covers the 'Equipment for Ventilation System' imported by the appellant.
Thus, we hold that the goods imported by the appellant are covered under List 7 of Notification No. 12/2012-CE dated: 17.03.2012, Accordingly, we hold that the assessing officer has initially rightly allowed the exemption from CVD for the said goods. Thus, we do not find any merit in the findings of the lower authorities that the goods imported by the appellant are not eligible for the exemption of CVD Notification No. 12/2012-Cus. Accordingly, we hold that the demand of customs duty along with interest confirmed in the impugned order is not sustainable and hence we set aside the same.
6.4. In view of the above findings, we set aside the impugned order and allow the appeal filed by the appellant with consequential relief, if any, as per law.
(Operative part of Order was pronounced in Open court) (ASHOK JINDAL) MEMBER (JUDICIAL) (K. ANPAZHAKAN) MEMBER (TECHNICAL) rkp