2011 (8) TMI 671 - AT - Customs

Classification - Imported Rovimix B2 80 SD (feed grade not for medical/human use) - classifiable under sub-heading 2309.90 OR 29.36 as vitamin - Held That - In earlier years Chemical Engineer opined that they are suitable for the feed of animals and are classifiable under heading 23. However in the present case the opinion of Chemical Engineers differ therefore we find that an opportunity to cross-examine the Chemical Examiner is required.Appeal disposed of by way of remand.

Summary

Issues: Classification of imported goods under Customs Tariff, violation of principles of natural justice, reliance on HSN Explanatory Notes, interpretation of Chapter Notes to Chapter 29 of the Tariff.

Classification of Goods: The appellant imported goods declared as Rovimix B2 80 SD and claimed classification under sub-heading 2309.90 of the Customs Tariff. The Revenue sought to classify the goods under Chapter Heading 29.36 as vitamin based on the opinion of the Chemical Examiner. The Chemical Examiner's opinion differed from a previous test report, leading to a dispute in classification. The appellant contended that the impugned order violated natural justice by not allowing cross-examination of the Chemical Examiner.

Principles of Natural Justice: The appellant argued that the Chemical Examiner provided conflicting opinions for the same goods, with a previous report supporting classification under Chapter 23 of the Tariff. The appellant requested cross-examination to challenge the contradictory opinions but was denied by the adjudicating authority. This denial was considered a violation of natural justice principles, leading to dissatisfaction with the order passed by the Commissioner (Appeals).

Reliance on HSN Explanatory Notes: The appellant relied on the HSN Explanatory Notes to support their classification claim. Additionally, the appellant highlighted that for a previous import, the goods were cleared under Chapter 23 of the Tariff based on the Chemical Examiner's opinion, which contradicted the classification sought by the Revenue in the present case.

Interpretation of Chapter Notes: The Revenue argued that the goods should be classified under Chapter 29 of the Tariff based on the amendment to Chapter Notes, specifically Chapter Note 1(f) of Chapter 29. The introduction of this Chapter Note impacted the classification of goods containing certain organic compounds with added stabilizers. The appellant's goods, being dextrin with anti-caking agent properties, were claimed to fall under Chapter 29 post the introduction of this Chapter Note.

Judgment: The Tribunal found that the conflicting opinions of the Chemical Examiner warranted an opportunity for cross-examination to ensure procedural fairness. As there was no finding on the request for cross-examination in the previous orders, the impugned decision was set aside. The matter was remanded to the adjudicating authority for a fresh decision after allowing cross-examination of the Chemical Examiner and considering relevant legal precedents. The appeal was disposed of by way of remand to uphold the principles of natural justice and ensure a fair classification process.