2009 (6) TMI 813 - AT - Customs

Summary

Issues: Classification of imported product under Customs Tariff Act, validity of Bank Guarantee extension communication, premature communication by the Commissioner of Customs.

Classification under Customs Tariff Act:
The Tribunal, in Final Order No. 1458 to 1462/08, held that the product "LIBREL Brand Micronutrients" imported for agricultural use falls under Chapter Heading 31.05 of the Customs Tariff Act. It was emphasized that there is no deeming fiction in Chapter 31 of the CETA, 1985, stating that repacking and re-labelling amount to manufacture triggering duty liability. Consequently, the impugned orders of the Commissioner of Customs and the Commissioner of Central Excise were set aside, and the appeals were allowed.

Validity of Bank Guarantee extension communication:
Despite the Tribunal's final orders, the Office of the Commissioner of Customs, Chennai sent a letter to Deutsche Bank, Mumbai, on 6-5-2009, regarding the extension of a Bank Guarantee executed by the appellants. The letter requested an extension before the expiry date, warning that failure to do so would be treated as a claim for a specific sum. The Tribunal noted that the Revenue had appealed to the Apex Court against its final order, but no stay had been granted. Consequently, the Tribunal deemed it premature for the department to issue such communication. The Tribunal set aside the communication and allowed the miscellaneous application, directing the order to be given to both sides dasti.

Premature communication by the Commissioner of Customs:
The Tribunal highlighted that the department's communication to extend the Bank Guarantee was premature, given the absence of a stay on the Tribunal's final order by the Revenue. By setting aside the premature communication, the Tribunal emphasized the need for compliance with legal procedures and the importance of respecting the Tribunal's decisions until further legal developments occur. The Tribunal's decision aimed to uphold fairness and procedural correctness in the handling of such matters by the concerned authorities.