2013 (10) TMI 1257 - AT - Customs

Classification of Goods import of silver, and gold coins and medallions - appellant claim that these are classifiable under Chapter Heading 71.08 covered by Notification No.62/04 dt. 12.5.04 - Revenue was of the view that it has numismatic value and classifiable under Chapter 97.05 - Waiver of Pre-deposit - Held that - The main contention of the applicant is that they imported large quantity specially ordered and freshly minted in Germany for commemorating events or distribution during celebration - the manufacturer and supplier confirmed that they have manufactured against order and such goods have no numismatic value - the evidences would be appreciated at the time of appeal hearing - ICICI Bank Ltd. imported silver, gold coins on behalf of applicant - It is seen that whatever the quantity imported through ICICI Bank Ltd., they have deposited the entire amount - Considering the amount paid by the applicant and prima facie case, we direct the applicant to deposit further amount - Upon such deposit, the predeposit of balance duty along with interest and penalty in respect of this applicant as also in respect of other applicants shall stand waived and recovery is stayed during pendency of appeals Partial stay granted.

Summary

Issues:
1. Application for waiver of predeposit of duty, penalty, and interest.
2. Classification of imported goods under Chapter Heading 71.08 or Chapter 97.05.
3. Discrepancy in declarations regarding the imported goods' nature and value.

Analysis:
1. The judgment pertains to applications for waiver of predeposit of duty, penalty, and interest arising from a common order. The Appellant sought waiver of duty amounting to Rs.1,30,44,357/- and penalty. The Commissioner confirmed a duty demand of Rs.25,27,89,159.00 on M/s. ICICI Bank Ltd. and Rs.1,30,44,357.00 on the Applicant. The Tribunal had previously waived pre-deposit of penalty on an appeal filed by M/s. ICICI Bank Ltd. The Applicant argued that the imported goods were silver and gold coins and medallions, classifiable under Chapter Heading 71.08, while Revenue contended they had numismatic value and were classifiable under Chapter 97.05.

2. The dispute centered around the classification of the imported goods. The Applicant claimed the goods were silver and gold coins and medallions falling under Chapter Heading 71.08, supported by a notification. On the other hand, Revenue argued that the goods had numismatic value and were classified under Chapter 97.05. The Tribunal noted that the goods were specially ordered and freshly minted in Germany for commemorative events, with the manufacturer confirming no numismatic value. However, Revenue pointed to declarations indicating rare collections with higher value than usual.

3. The discrepancy in declarations regarding the imported goods' nature and value was a key point of contention. The Applicant maintained that the goods had no numismatic value and were imported in large quantities for specific purposes. They highlighted that ICICI Bank Ltd. had already deposited the demanded duty amount. Revenue, on the contrary, emphasized the declarations in the Airway Bill indicating rare collections with higher value. The Tribunal directed the Applicant to deposit a further amount of Rs.15,00,000/- within a specified timeline, with the predeposit of the remaining duty, interest, and penalty waived subject to compliance. The appeals were scheduled for a hearing after the compliance deadline.

This detailed analysis outlines the issues of waiver of predeposit, classification of imported goods, and discrepancies in declarations addressed in the judgment by the Appellate Tribunal CESTAT CHENNAI.