2013 (12) TMI 34 - AT - Customs

Benefit of exemption under Notification No.21/2002-Cus. dated 1.3.2002 (Sl. No.503) - Classification of goods - Whether the goods imported by them and declared as battery separator in the relevant Bills of Entry (filed in March - April, 2006) should be classified under Heading 8507 90 90 as claimed by the importer or under Heading 7019 32 00 as determined by the Commissioner (Appeals) - Held that - basis of the demand was that the imported material was not as such useable as battery separator and hence not classifiable under SH 8507.90. The whole controversy was revolving around the form in which the material was imported. The intended purpose of import (battery separator) was not in dispute - material imported by the appellant in March-April 2006 was classifiable under Heading 8507 90 90 and hence eligible for the benefit of the relevant Notification and further that this benefit cannot be denied on the ground that the material was imported in roll form - Decided in favour of assessee.

Summary

Issues: Classification of goods under Heading 8507 90 90 or Heading 7019 32 00 for exemption under Notification No.21/2002-Cus. dated 1.3.2002.

The judgment by the Appellate Tribunal CESTAT Bangalore dealt with the issue of classifying goods imported as battery separators under either Heading 8507 90 90 or Heading 7019 32 00 for exemption eligibility under specific notifications. The central question was whether the goods, declared as battery separators in the Bills of Entry, should be classified as claimed by the importer or as determined by the Commissioner (Appeals). The appellant argued that the goods were intended for use as battery separators, while the department contended that since the item was imported in roll form, it should not be classified as a battery separator under Heading 8507. The appellant cited a previous decision where similar goods were classified under Heading 8507, which was upheld by the apex court. The Tribunal agreed with the appellant, stating that the issue was settled in their favor based on the previous decision, emphasizing that the form of import should not affect classification. Consequently, the impugned order was set aside, and the appeal was allowed, confirming the classification under Heading 8507 90 90 and eligibility for the relevant exemption notification, regardless of the form of import. The appeal was allowed with consequential relief as per law.