2012 (4) TMI 366 - AT - Central Excise

Claiming free import of old and used tyres classified under SH 4012 2090 - Department examined the consignment stating approximately 35% to 45% can be used as such on Indian roads and remaining cannot be used as such - SCN issued for reclassification and imposition of fine and penalty - first appellate authority, uphold the reclassification of the goods imported by the appellant under CH 4012 2010/20 Held that - 100% examination revealed that the number of tyres that can be used as such, merits the classification under CSH No.4012.2010/20 as correctly upheld by first appellate authority - the lower authorities classification that the entire consignment under CSH No.4012.2010/20 is incorrect - balance number of tyres in both the appeals which can be used as such, they have to be classified under CSH 4012 2090, as has been declared by the assessee - remanded the matter only for the purpose of valuation and for re-visit of the imposition of penalty and redemption fine.

Summary

Issues: Classification of imported goods under Customs Tariff Act, 1975

Analysis:
1. Factual Background: The appellant imported consignments of used tyres declared as old & used tyres under SH 4012 2090, claiming free import. The consignment was examined, revealing that only a portion could be used on Indian roads.

2. First Appellate Authority's Decision: The authority upheld reclassification under CH 4012 2010/20 but set aside valuation, remanding for re-visit of penalty imposition. The appellants challenged the classification aspect.

3. Appellant's Argument: The appellant argued for classification under CSH 40122090, citing precedents like Galaxy Pet Packaging Syntex case. They emphasized that the tyres were for animal-driven vehicles.

4. Revenue's Argument: The Revenue contended that similar cases were classified under 4012 2010/20 directly usable without further activity.

5. Tribunal's Analysis: The Tribunal considered expert reports and 100% examination results. It noted that only a specific quantity of tyres could be used as such, requiring a split classification. The Tribunal upheld classification under CSH 4012 2010/20 for specific tyres and CSH 4012 2090 for the remaining usable tyres.

6. Decision and Modification: The Tribunal modified the order, maintaining the remand for valuation but adjusting the classification based on the specific quantity of usable tyres. The adjudicating authority was directed to consider this classification in the valuation proceedings.

7. Conclusion: The appeals were disposed of with the modified classification order, ensuring a nuanced approach based on the usability of the imported goods.