1982 (12) TMI 189 - AT - Customs

Summary

Issues:
Classification of Caraway Seeds (Zeera Siah) for duty assessment under the Customs Tariff Act, 1975.

Detailed Analysis:
The case involved the classification of Caraway Seeds for duty assessment under the Customs Tariff Act, 1975. The appellants sought assessment of Caraway Seeds under Heading 12.07 of the Tariff, claiming that the seeds were primarily used in pharmacy. They produced affidavits of experts in support of their contention, which were not refuted by the Department. The Department, however, argued that Heading 09.04/10(1) related to spices and was more specific for the impugned goods, which had multifarious uses including in the kitchen and in the preparation of liquors. The Department also highlighted that the goods were cleared as spices under Heading 09.04/10 during import clearance, and the appellants accepted this assessment at that stage. The Appellate Collector rejected the appellants' claim for re-assessment under Heading 12.07, stating that Caraway Seeds were generic and had various uses, including in the preparation of liquors. The Department's argument was that Caraway Seeds belonged to the spices family and were correctly classifiable under Heading 09.04/10, which was more specific compared to Heading 12.07. The Tribunal upheld the assessment under Heading 09.04/10, considering the specific description provided by Rule 3(a) of the Rules for the Interpretation of the Customs Tariff.

The appellants contended that the Caraway Seeds imported were exclusively used for the manufacture of Ayurvedic medicines, but the Department provided evidence of non-pharmaceutical uses of Caraway Seeds, primarily in the preparation of liquors. The Tribunal noted that the appellants did not provide further elaboration or evidence of a sub-variety exclusively used in pharmacy. The Department's records indicated various uses of Caraway Seeds beyond medicinal purposes. The Tribunal found that the appellants' contention of exclusive medicinal use was not supported by the available record, and the affidavits produced were not sufficient to establish the true nature of the goods. The argument that the goods were accepted as raw material for Ayurvedic medicines and released under the Open General Licence was rejected, as the Customs Tariff's specific classification prevailed over considerations under the Import Policy. The Tribunal upheld the assessment under Heading 09.04/10(1) and dismissed the appeal, emphasizing the specific description provided by the Customs Tariff for the classification of Caraway Seeds.