2010 (10) TMI 173 - AT - Customs

Rovimix Stay-C35 Exemption - chemical name of the product Sodium, calcium ascorbyl-2-phosphate - synonyms are given as L-ascorbic acid phosphate; L-ascorbic acid monophosphate; vitamin C phosphate - Considering the descriptions in the product literature - goods under import is nothing but Ascorbyl Polyphos phate specified under List-I, Item No. 3 against Sl. No. 18 of the impugned Notification No. 23/98 - appellants are entitled to exemption under the impugned Notification - orders are set aside and the appeal is allowed with consequential benefit to the appellants

Summary

Issues:
Interpretation of the imported goods for concessional duty under Notification No. 23/98.
Validity of denying concessional duty based on Chemical Examiner's report.
Determining the nature of the imported goods based on product literature.
Entitlement of the appellants to exemption under the impugned Notification.

Analysis:
The case involved the appellants importing goods claimed to be "Ascorbyl Polyphosphate" to avail concessional duty under Notification No. 23/98. The goods were provisionally assessed, and samples were sent for testing. The Chemical Examiner's report initially stated the sample was inconclusive but later opined it was a mixture of Sodium/Calcium salt of Ascorbyl Phosphate. The denial of concessional duty based on this expert opinion led to the appeal.

The Tribunal noted that the Chemical Examiner's report did not conclusively identify the compound by name, questioning the basis for denying concessional duty. In the absence of definitive chemical test results, the Tribunal examined the product literature submitted by the appellants and the submissions made by the authorities. The literature described the product as Sodium, calcium ascorbyl-2-phosphate, with synonyms like L-ascorbic acid phosphate and vitamin C phosphate. It highlighted the esterification of ascorbic acid to protect vitamin C and the composition primarily being the monophosphate ester of L-ascorbic acid.

Based on the detailed descriptions in the product literature, the Tribunal concluded that the imported goods were indeed Ascorbyl Polyphosphate as specified under List-I, Item No. 3 against Sl. No. 18 of Notification No. 23/98. Consequently, the Tribunal held that the appellants were entitled to exemption under the impugned Notification. Therefore, the impugned orders denying concessional duty were set aside, and the appeal was allowed, granting consequential benefits to the appellants. The operative portion of the order was pronounced in open court upon completion of the hearing.