2008 (1) TMI 698 - AT - Customs

Summary

Issues: Classification of imported Ceramic Anilox Rolls under Chapter 84 for duty assessment and refund claim

Classification under Chapter 84:
The appellants imported Ceramic Anilox Rolls, claiming they were part of a flexographic press and should be assessed at the machine rate under Chapter 84. The Asstt. Commissioner deemed the rolls as optional accessories covered by the Accessories (Conditions) Rules, 1963. These rules state that accessories supplied along with the machine without an extra charge are chargeable at the same duty rate as the machine. The Commissioner (Appeals) upheld this decision, citing that the ceramic rolls, according to Chapter Note 1(b) of Chapter 84, should not be classified under Chapter 84.

Legal Precedent and Decision:
The Tribunal referred to the case of CCE v. Jyoti Ceramic Industries P. Ltd. [1999 (107) E.L.T. 651], which established that ceramic parts, even when part of a machine, do not fall under Chapter 84 due to Note 1(b) of Chapter 84. Based on this precedent, the Tribunal held that the correct classification for the ceramic rolls is under Chapter 69, which covers ceramic articles. Consequently, the duty paid under Chapter 69 was deemed correct, and no excess duty was paid to warrant a refund. Therefore, the Tribunal upheld the previous order, denying the appellants' refund claim.

In conclusion, the Appellate Tribunal CESTAT, MUMBAI ruled that the imported Ceramic Anilox Rolls should be classified under Chapter 69 instead of Chapter 84 for duty assessment. The decision was based on the legal precedent that ceramic parts, even when part of a machine, are not classified under Chapter 84. As a result, the Tribunal rejected the appeal for a refund of excess duty, upholding the initial assessment and denying the appellants' claim.