2016 (10) TMI 1171 - AT - Customs

Classification of imported goods - whether the goods sought to be imported are spares as contended by the Revenue or consumables as claimed by the importer/respondent? - Held that - Pamphlets may be useful for advertisement. In this case, the documents are not mere pamphlets. They are certificates issued by a Chartered Engineer who is an expert in the field and is also authorized for issuing such certificates to the Department on doubtful issues - the impugned goods are not spares but consumables - appeal dismissed - decided against Revenue.

Summary

Issues:
- Classification of imported goods as spares or consumables based on documentary evidence provided by the importer and the Commissioner (Appeals) decision.

Analysis:
The appeal before the Appellate Tribunal CESTAT HYDERABAD concerned the classification of goods sought to be imported as either spares or consumables. The Department filed the appeal against the Commissioner (Appeals) order, which had set aside the original authority's decision. The primary issue for consideration was whether the goods in question should be categorized as spares, as argued by the Revenue, or as consumables, as claimed by the importer. The Department contended that the goods fell under the category of spares based on the definitions provided in the Foreign Trade Policy (FTP). The Department's representative highlighted that the Commissioner (Appeals) had erred in giving weight to the Chartered Engineer's certificate and supplier certificates, arguing that commercial pamphlets hold little evidentiary value for classification purposes, citing the precedent set in Trading Engineers (International) Pvt. Ltd. v. CCE, New Delhi [1997 (91) E.L.T. 74 (Tri.)].

During the proceedings, no representation was made on behalf of the respondent, despite the issuance of a notice. The Tribunal proceeded with the case from 2008 after hearing the Department and reviewing the records. In the impugned order, the Commissioner (Appeals) noted that the importer had provided documentary evidence supporting the claim that the goods were consumables. The Commissioner found merit in the Chartered Engineer's certificate and supplier certificates submitted by the importer, emphasizing the technical nature of the issue. The Tribunal concurred with the Commissioner's view, distinguishing the present case from the precedent cited by the Department's representative. The Tribunal acknowledged that the documents presented were not mere pamphlets but certificates issued by an expert Chartered Engineer authorized to provide such certifications on technical matters, thus supporting the conclusion that the goods were consumables.

Ultimately, the Tribunal found no fault with the Commissioner (Appeals) decision and dismissed the appeal, upholding the classification of the imported goods as consumables based on the documentary evidence provided by the importer, particularly the certificates issued by the Chartered Engineer. The judgment emphasized the importance of expert opinions and technical certificates in determining the classification of goods in such cases, deviating from the general principle regarding the evidentiary value of commercial pamphlets.