2015 (4) TMI 1013 - AT - Customs

Denial of benefit of exemption notification No.41/2005, dt.01.03.2005 - Classification under Heading No. 1516 or under 1517 - Held that - issue is no more res integra in view of the decision of the Tribunal in the case of Adani Wilmar Ltd Vs Commissioner of Customs Kandla - 2012 (12) TMI 151 - CESTAT, AHMEDABAD . Following the same, impugned order is set aside - Decided in favour of assessee.

Summary

Issues:
Classification of imported Bakery Shortening under Customs Tariff Act and eligibility for exemption notification.

Analysis:
The Appellant imported Bakery Shortening under Heading No.1516 of Customs Tariff Act, availing exemption notification No.41/2005. The Revenue contended that the Bakery Shortening should be classified under Heading No.1517, thus challenging the eligibility of the Appellant for the exemption notification. The Tribunal referred to a previous decision in the case of Adani Wilmar Ltd Vs Commissioner of Customs Kandla and highlighted that goods under Chapter 1516 do not necessarily fall under Chapter 1517 unless further processed. The Tribunal emphasized the necessity to demonstrate a change in the basic character of the goods to reclassify them under Chapter 1517. It was noted that no samples were taken or tests conducted during the removal of goods to ascertain their nature, weakening the Revenue's case for reclassification.

Moreover, the Tribunal cited the guidelines from the Hon'ble Supreme Court in the case of Garware Nylons Limited, emphasizing the burden of proof on taxing authorities to justify the classification claimed by them. The Court stressed the importance of providing material evidence to support reclassification claims, whether oral or documentary. In the absence of substantial evidence from the Revenue, the Tribunal found their stand unsustainable. Consequently, the Tribunal allowed the appeal by classifying the goods under Chapter Heading 15162091 and granting exemptions from additional duty of excise under Notification No. 4/2005. The decision was made in line with the principles laid down by the Supreme Court regarding classification disputes.

Following the precedent set by the previous decision and considering the lack of concrete evidence supporting the Revenue's reclassification, the Tribunal set aside the impugned order and allowed the appeal with consequential relief. The judgment reaffirmed the importance of providing substantial evidence to justify classification decisions and upheld the Appellant's eligibility for the exemption notification based on the specific classification of the imported Bakery Shortening under the Customs Tariff Act.