2006 (3) TMI 635 - AT - Customs

Summary

Issues:
Classification of imported granules under Chapter 85 or Chapter note under sub-heading 3901.90; Reliability of evidence presented for classification; Pre-deposit requirement for duty amount.

Classification Issue:
The case involved a dispute regarding the classification of imported granules, specifically whether they should be classified under Chapter 85 or Chapter note under sub-heading 3901.90. The Commissioner noted that the appellants failed to provide sufficient evidence establishing that the granules possessed the necessary properties for classification under Chapter 85. The Tribunal emphasized the need for concrete evidence and rejected the appellants' plea for full waiver of pre-deposit due to the lack of evidence drawn under Customs custody.

Reliability of Evidence Issue:
The appellants relied on test results from the Central Institute of Plastics Engineering & Technology to support their claim that the granules had the capacity of shrink. However, the JDR argued that this evidence was not presented before the Commissioner and could not be accepted as the samples were not drawn under Customs custody. Citing a Supreme Court ruling, the JDR contended that evidence of this nature cannot be considered once the goods are cleared by Customs.

Pre-Deposit Requirement Issue:
Ultimately, the Tribunal ordered the appellants to pre-deposit a sum of Rs. 2,00,000 within two months, with the balance duty pre-deposit waived upon compliance. Failure to comply would result in the dismissal of the appeal under Section 129E of the Customs Act. The Tribunal stressed the importance of complying with the pre-deposit requirement to avoid dismissal of the appeal.