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Issues involved: Classification of goods under Customs Tariff Heading (CTH) 7103.10, interpretation of Gemmological Institute report, applicability of Notification 50/94, invocation of Section 19 of Customs Act, 1962, and remand for re-adjudication.
In this case, the main issue revolved around the classification of imported goods under CTH 7103.10 and the interpretation of the Gemmological Institute report. The imported Rough Turquoise was initially sought to be cleared at nil rate of duty under Notification No 50/94. However, upon examination, the goods were deemed to be 'material treated/or banded &/or impregnated natural Turquoise' by the Gemmological Institute of India. The Deputy CC also reported that the material did not exhibit features of natural Turquoise, leading to the classification of the goods under CTH 7103.99, resulting in an alleged violation of the ITC Policy. Despite this, the adjudicating authority classified the goods as natural turquoise under 7103.10 at a nil rate of duty, finding no ITC violation. On appeal by the Revenue, the Customs Commissioner (Appeals) upheld the lower authority's decision, rejecting the Revenue's argument that the benefit of Notification 50/94 was only intended for rough semi-precious stones. The Tribunal observed that when the Gemmological Institute reported the stones as 'treated Turquoise,' the invocation of Section 19 of the Customs Act, 1962 was deemed unnecessary, as the import of a mixed lot of natural and bonded stone was not definitively established. The Tribunal emphasized the importance of examining the Gemmological Institute's representative to clarify the meaning behind their report, rather than relying on interpretations, given that adjudicators are not experts in gemology. Consequently, the Tribunal set aside the previous orders and remitted the matter for re-adjudication to ascertain the true nature of the imported goods. Ultimately, the Tribunal allowed the appeal as a remand, ordering a fresh adjudication based on a more thorough examination of the Gemmological Institute report and the classification of the goods under the relevant Customs Tariff Heading, emphasizing the need for expert testimony to clarify any ambiguities in the classification process.
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