2013 (9) TMI 548 - AT - Customs

Classification of Goods - Benefit of Notification NO. 21/2002 - The appellants imported 354.750 MT of High Density Polyethylene and classified the same under Customs Tariff sub-Heading 39012000 of the first schedule to the Customs Tariff Act, 1975 and claimed the benefit of concessional rate of duty under Notification NO. 21/2002 - Revenue Rejected the claim - Held that - No technical literature or opinion had been produced either by the appellant or by the revenue in support of their case - The Revenue had not got even the test certificate from the government laboratory, which was essential in this case - In the absence of test conducted by the Government controlled laboratory, if the test report of the supplier was relied upon it had to be fully considered - The Revenue had not applied even after the trade parlance test. High Density Polyethylene was classified under Heading 39.01 and the said classification was not disputed - Therefore, the imported goods were indeed polymer of ethelene for the purposes of Heading 3910 - the goods had been described in the notification on the basis of tariff description Sl. No. 477 of the Notification borrowed the language of the tariff Heading 39.01 will get exemption under sl. no. 477 of the notification - Ambica Prasad V. State of U.P. 1980 (5) TMI 100 - SUPREME COURT - Every new discovery or new argumentative novelty cannot undo or compel re-consideration of a binding precedent - submissions sparking with creative ingenuity and presented with high pressure advocacy cannot persuade us to reopen what was laid down for the guidance of the nation as a solemn proposition by the epic fundamental rights case Order was not sustainable thus set aside Decided in favour of Assessee.

Summary

Issues:
Classification of imported goods under Customs Tariff sub-Heading 39012000, Benefit of concessional rate of duty under Notification NO. 21/2002-Cus, Denial of exemption, Interpretation of exemption notification, Nature of imported goods as Black Compounded High Density Polyethylene, Application of Rule 2(b) of the General Rules for interpretation of the First Schedule to the Customs Tariff, Reliance on supplier's description of goods, Tribunal's previous decision in similar case, Principles of strict interpretation of exemption notifications.

Analysis:
The appellants imported High Density Polyethylene (HDPE) and claimed classification under sub-heading 39012000 for concessional duty under Notification NO. 21/2002-Cus. The dispute arose as the authorities denied the exemption, arguing the goods were Black Compounded HDPE, not covered by the notification. The appellants contended that the goods remained HDPE even with the addition of carbon black, citing HSN Explanatory Notes and previous circulars supporting the interpretation of tariff descriptions in notifications.

The department relied on supplier documents describing the goods as Black Compounded HDPE, emphasizing the physical properties and commercial understanding of the goods in the international market. The department highlighted the strict interpretation of exemption notifications and cited legal precedents supporting the narrow application of such provisions.

The Tribunal analyzed the nature of the imported goods, considering the addition of carbon black and the classification under HDPE. Referring to a previous decision, the Tribunal found that the department's arguments lacked substantial evidence and failed to challenge the established interpretation. The Tribunal emphasized the importance of adhering to binding precedents and dismissed the department's contentions.

In conclusion, the Tribunal set aside the impugned Order-in-Appeal, ruling in favor of the appellants and allowing the appeal with any consequential relief. The judgment highlighted the significance of consistent legal interpretations and the application of established principles in customs matters.